Allianz SE Annual Report 2015

Allianz SEAnnual Report 2015

SE

Annual Report 2015 Allianz SE2

a to our investors 5 Supervisory Board report 11 Supervisory Board 12 Board of Management

B Management report of allianz SE

17 executive Summary and outlook 22 operations by reinsurance lines of Business 24 Balance Sheet review 26 liquidity and Funding resources 27 risk and opportunity report 40 Corporate governance report 45 Statement on Corporate Management pursuant to § 289a of the HGb 47 remuneration report 61 other information

C Financial Statements of allianz SE

72 Financial Statements 75 notes to the Financial Statements106 Further information

Content

to go directly to any chapter, simply click on the headline or the page number.

Allianz SE at a glance

AnnuAl results

2015

Change from

previous year in % 2014 2013 2012 2011 2010 2009

More details on

page

Income statementGross premiums written € mn 8,328 17.6 7,084 3,568 3,673 3,590 3,854 3,811 22Net underwriting result € mn 224 (8.8)1 246 125 213 (163) 161 325 17Net technical result € mn 31 (68.5)1 99 138 50 58 101 679 18Non-technical result € mn 3,167 11.0 2,853 2,514 1,734 1,685 1,451 983 18Net operating income € mn 3,198 8.3 2,952 2,652 1,784 1,743 1,552 1,662Extraordinary result € mn – – – – (27) (2) 178 –Taxes € mn 356 108.31 171 144 543 349 374 279 19Net income € mn 3,554 13.8 3,123 2,796 2,300 2,090 2,104 1,941 19

Balance sheet as of 31 DecemberInvestments € mn 107,787 6.8 100,957 96,843 96,206 91,626 88,337 87,442 24Shareholders’ equity € mn 44,978 1.2 44,454 43,674 42,860 42,546 42,404 42,309 24Insurance reserves € mn 13,168 33.7 9,851 8,439 10,795 10,527 9,999 9,780 84

Share informationDividend per share € 7.30 2 6.6 6.85 5.30 4.50 4.50 4.50 4.10 19Total dividend € mn 3,3202,3 6.7 3,112 2,405 2,039 2,037 2,032 1,850 19Share price as of 31 December € 163.55 19.1 137.35 130.35 104.80 73.91 88.93 87.15Market capitalization as of 31 December € mn 74,742 19.1 62,769 59,505 47,784 33,651 40,419 39,557

Other informationRetention % 90.3 4.5 %-p 85.8 84.0 86.0 88.2 81.1 82.9 17Loss ratio (net) Property-Casualty % 68.0 1.4 %-p 66.6 64.0 63.9 80.2 68.2 63.4 17Expense ratio (net) Property-Casualty % 28.9 0.1 %-p 28.8 31.6 27.7 27.1 27.6 26.7 18Combined ratio (net) Property-Casualty % 96.9 1.5 %-p 95.4 95.6 91.6 107.3 95.8 90.1 22

1 Calculation on the basis of the accurate, non-rounded amount.2 Proposal.3 Total dividend reflects the treasury shares held at the time of the publication of the convocation of the

Annual General Meeting in the Federal Gazette. Such treasury shares are not entitled to the dividend

pursuant to § 71b of the German Stock Corporation Act (AktG). Should there be any change in the num-ber of treasury shares by the date of the Annual General Meeting, the total dividend will be amended accordingly.

Building on our proud Heritage

Allianz Se

Shareholders’ equity page 24

gross premiums written page 22

net income page 19

€ bn 45.0

€ mn 8,328

€ mn 3,554

investments page 24

Combined ratio property-Casualty page 22

proposed dividend per share page 19

€ bn 107.8

96.9 %

€ 7.30

allianz is one of the strongest financial communities worldwide. More than 85 million private and corporate customers insured by the allianz group rely on its knowledge, gloBal reaCH and Capital StrengtH to protect them and help them realize their goals in life. allianz stands for trust based on integrity, reSilienCe and the dediCation of its group-wide 142,459 employees.

33Annual Report 2015 Allianz SE

ATo ouR InvesToRs

4 Annual Report 2015 Allianz SE

To ouR InvesToRsPages 4 – 14

5 Supervisory Board Report11 Supervisory Board12 Board of Management


A To our Investors

5 Supervisory Board Report 11 Supervisory Board 12 Board of Management

Ladies and Gentlemen,During the 2015 fiscal year, the Supervisory Board fulfilled all its duties and obligations as laid out in the company statutes and applicable law. It monitored the management of the company, advised the Board of Management regarding the conduct of business and dealt with personnel matters related to the Board of Management as well as to succession planning.

OvErviEwWithin the framework of our activities, the Board of Management informed us on a regular basis and in a timely and comprehensive manner, both verbally and in writing, on the course of busi-ness as well as on the development of the Allianz Group and Allianz SE, including deviations in actual business developments from the planning. The annual financial statements of Allianz SE and the consolidated financial statements with its respective auditor’s reports as well as the half-yearly and quarterly financial reports were thoroughly examined by the Supervisory Board and the Audit Committee.

Further key areas the Board of Management reported on were the Renewal Agenda on business strategy of the Board of Management, capital adequacy, the ongoing challenges facing the life insurance business due to low interest rates, exceptional developments at certain subsidiaries, and implementation of the German Act on Equal Participation of Women and Men in Executive Positions. In addition, we were extensively involved in the Board of Management’s planning for both the 2016 fiscal year and the three-year period from 2016 to 2018.

Supervisory Board Report


In the 2015 fiscal year, the Supervisory Board held six meetings. The meetings took place in February, March, May, August, October and December. The Board of Management’s verbal reports at the meetings were accompanied by written documents, which were sent to each member of the Supervisory Board in time for the relevant meeting. The Board of Management also informed us in writing of important events that occurred between meetings. The chairmen of the Super-visory and Management Boards also had regular discussions about major developments and decisions.

Details on each member’s participation at meetings of the Supervisory Board and its committees can be found in the Corporate Governance Report, starting on page 40. Members of the Super-visory Board who were unable to attend meetings of the Supervisory Board or its committees were excused and, as a rule, cast their votes in writing.

iSSuES diScuSSEd in thE SupErviSOry BOard plEnary SESSiOnSIn all of the Supervisory Board’s 2015 meetings, the Board of Management reported on Group revenues and results by addressing the developments in individual business segments. Further-more, we were regularly informed by the Board of Management about the capital, financial and risk situation, the impact of natural catastrophes, the status of major legal disputes and other essential developments.

In the meeting of 25 February 2015, the Supervisory Board dealt comprehensively with the provi-sional financial figures for the 2014 fiscal year and the Board of Management’s recommended dividend. The appointed audit firm, KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG), Munich, reported in detail on the provisional results of their audit. Underwriting reserves and IT systems were among the focal points of the audit. The Chief Compliance Officer then provided the annual report on the compliance organization and key compliance-related matters. During the further course of the meeting, the Supervisory Board also reviewed the extent to which individual mem-bers of the Board of Management had achieved their targets and set their variable remuneration for the 2014 fiscal year. We also verified the fitness and propriety of the members of the Board of Management and the Supervisory Board.

In the meeting of 12 March 2015, the Supervisory Board discussed the audited annual Allianz SE and consolidated financial statements as well as the recommendation for the appropriation of earnings by the Board of Management for the 2014 fiscal year. KPMG confirmed, that there were no discrepancies to their February report and issued an unqualified auditor’s report for the individual and consolidated financial statements. In addition, the Board of Management sub-mitted its report on risk developments in 2014. The Supervisory Board also dealt with the agenda for the 2015 Annual General Meeting (AGM) of Allianz SE and the respective proposals for reso-lution. The Supervisory Board also resolved to appoint KPMG as auditor for the individual and consolidated financial statements for the 2015 fiscal year and for the auditor’s review of the 2015 half-yearly interim report. In addition, the Super visory Board was informed about the develop-ments in digitalization and the strategic importance of this topic.

On 6 May 2015, just before the AGM, the Board of Management briefed us on the first quarter 2015 performance and on the Allianz Group’s current situation, particularly on the capitalization, the share price development, and the impact of certain loss events.


A To our Investors


In our meeting on 6 August 2015, the Board of Management reported in depth on the half-yearly results and also dealt with the issuance of Allianz shares to employees of the Allianz Group as well as the future Common European Sales Law. We then dealt extensively with the effects of the low interest rate environment on the life insurance sector and, in particular, the measures adopted by Allianz. The Supervisory Board agreed to the early termination of Mr. Manuel Bauer’s appointment as a member of the Board of Management of Allianz SE with effect from 31 August 2015. In the course of the subsequent re-alignment of the schedule of responsibilities of the Board of Management, it appointed Mr. Oliver Bäte as the member of the Board of Management responsible for “employment and social welfare”. The Supervisory Board also elected Mr. Jürgen Lawrenz to the Risk Committee as the successor of Mr. Franz Heiß, who stepped down from the Supervisory Board, and dealt extensively with the matter of implementing the German Act on Equal Participation of Women and Men in Executive Positions. The meeting was preceded by a separate information session for members of the Supervisory Board, at which Allianz managers gave presentations on current life insurance topics.

The main focus of the meeting on 1 October 2015 was the future strategy of the Allianz Group. Mr. Bäte and his colleagues from the Board of Management presented the Renewal Agenda and initial implementation measures regarding the strategic topics True Customer Centricity, Digital by Default, Technical Excellence, Growth Engines, and Inclusive Meritocracy. The Super-visory Board discussed in detail the key points and further steps toward implementing the new strategic initiatives.

At the 10 December 2015 meeting, the Board of Management provided us with information about the third-quarter results and further business developments as well as on further specifics of the Renewal Agenda. We also discussed the planning for the 2016 fiscal year and the 2016 – 2018 three- year period, the remuneration system within the Allianz Group and the Declaration of Conformity with the German Corporate Governance Code. The Supervisory Board reviewed the appropriateness of the remuneration of the Board of Management and adopted a resolution, on the recommendation of the Personnel Committee, to adjust the contributions to the pension plan. In addition, the Supervisory Board set targets for the variable remuneration of members of the Board of Management and discussed succession planning with regard to the Board of Management. Finally, we took a detailed look at the results of the Supervisory Board’s efficiency review and adopted a 15-year limit to the term of membership on the Supervisory Board.

dEclaratiOn Of cOnfOrmity with thE GErman cOrpOratE GOvErnancE cOdEOn 10 December 2015, the Board of Management and the Supervisory Board issued the Declara-tion of Conformity in accordance with § 161 of the German Stock Corporation Act (“Aktien gesetz”). The Declaration was posted on the company website, where it is available to shareholders at all times. Allianz SE fully complies and will continue to fully comply with the recommendations of the German Corporate Governance Code made in the Code’s version of 5 May 2015.

Further explanations of corporate governance in the Allianz Group can be found in the Corpo-rate Governance Report starting on page 40 and the Statement on Corporate Management pursuant to § 289a HGB starting on page 45. More information on corporate governance can also be found on the Allianz website at www.allianz.com/corporate-governance.

www.allianz.com/corporate-governance


cOmmittEE activitiESThe Supervisory Board has formed various committees in order to perform its duties efficiently: the Standing Committee, the Personnel Committee, the Audit Committee, the Risk Committee and the Nomination Committee. The committees prepare the discussion and adoption of resolutions in the plenary sessions. Furthermore, in appropriate cases, the authority to adopt resolutions has been delegated to the committees. There is no Conciliation Committee because the German Co-Determination Act (“Mitbestimmungsgesetz”), which provides for such a com-mittee, does not apply to Allianz SE as a European Company (SE).

The Standing Committee held three meetings in 2015. These related primarily to corporate governance issues, the preparation for the AGM, the matter of implementing the German Act on Equal Participation of Women and Men in Executive Positions, and the internal review of the Supervisory Board’s efficiency. During the fiscal year the committee passed resolutions to approve loans to senior executives.

The Personnel Committee held four regular meetings and two extraordinary meetings by tele-phone conference in the 2015 financial year. Areas of focus were the re-alignment of the schedule of responsibilities of the Board of Management following the departure of Mr. Bauer, and further succession planning. The committee also dealt with other mandate matters for active and former members of the Board of Management and with the proportion of women on Allianz SE’s Board of Management. In addition to preparing the target achievement of Board of Management members for the 2014 fiscal year, the committee prepared the review of the remuneration system, and the setting of targets for variable remuneration.

The Audit Committee held five meetings in 2015. In the presence of the auditor, it discussed the annual financial statements of Allianz SE and the consolidated financial statements of the Allianz Group, the management reports and auditor’s reports, as well as the half-yearly and quarterly financial reports. After carrying out these reviews, the Audit Committee saw no objec-tions. The committee also dealt with the auditor’s engagement, established priorities for the annual audit in the fiscal year 2015, and discussed assignments to the auditors for services not connected to the audit itself. In addition, the committee dealt extensively with the compliance system, the internal auditing system as well as the accounting process and internal financial reporting control mechanisms. The committee received regular reports on the audit department’s work and on legal and compliance issues. Furthermore, in a presentation on cyber-security, the committee was informed about the measures to protect Allianz’s IT systems, and it also familiarized itself with the implementation status of the governance requirements according to Solvency II.

The Risk Committee held two meetings in 2015, at which it discussed the current risk situation of the Allianz Group with the Board of Management. The risk report and other risk-related state-ments in the annual Allianz SE and consolidated financial statements, as well as in manage-ment and group management reports, were reviewed with the auditor and the Audit Committee was informed of the result. The appropriateness of the early risk recognition system at Allianz was also discussed. The committee looked in detail at the effectiveness of the risk management system, in particular behavioral risk in property insurance. Other matters considered were the


A To our Investors


new supervisory regime according to Solvency II, the risk strategy of Allianz SE and of the Allianz Group, a MaRisk (Minimum Requirements for Risk Management) audit, the effects of the endur-ing low interest rate environment, and the Allianz SE’s classification as a Global Systemically Important Insurer (G-SII).

In November 2015, the Nomination Committee held a meeting by telephone conference to discuss the vacant position on the Supervisory Board that will materialise at the end of the AGM on 4 May 2016.

The Supervisory Board was regularly and comprehensively informed of the committees’ work.

Chair and committees of the Supervisory Board – as of 31 December 2015Chairman of the Supervisory Board: Dr. Helmut PerletDeputy Chairmen: Dr. Wulf H. Bernotat, Rolf ZimmermannStanding Committee: Dr. Helmut Perlet (Chairman), Dr. Wulf H. Bernotat, Prof. Dr. Renate Köcher, Gabriele Burkhardt-Berg, Rolf ZimmermannPersonnel Committee: Dr. Helmut Perlet (Chairman), Christine Bosse, Rolf ZimmermannAudit Committee: Dr. Wulf H. Bernotat (Chairman), Dr. Helmut Perlet, Jim Hagemann Snabe, Jean-Jacques Cette, Ira Gloe-Semler Risk Committee: Dr. Helmut Perlet (Chairman), Christine Bosse, Peter Denis Sutherland, Dante Barban, Jürgen Lawrenz Nomination Committee: Dr. Helmut Perlet (Chairman), Prof. Dr. Renate Köcher, Peter Denis Sutherland

audit Of annual accOuntS and cOnSOlidatEd financial StatEmEntSIn compliance with the special legal provisions applying to insurance companies, the statutory auditor and the auditor for the review of the half-yearly financial report are appointed by the Supervisory Board of Allianz SE and not by the AGM. The Supervisory Board has appointed KPMG as statutory auditor for the annual Allianz SE and consolidated financial statements, as well as for the review of the half-yearly financial report of the fiscal year 2015. KPMG audited the financial statements of Allianz SE and the Allianz Group as well as the respective management reports. They issued an auditor’s report without any reservations. The consolidated financial statements were prepared on the basis of the international financial reporting standards (IFRS), as adopted in the European Union. KPMG performed a review of the half-yearly and quarterly financial reports.

All Supervisory Board members received the documentation relating to the annual financial statements and the auditor’s reports from KPMG on schedule. The provisional financial state-ments and KPMG’s audit results were discussed in the Audit Committee on 17 February 2016 and in the plenary session of the Supervisory Board on 18 February 2016. The final financial state-ments and KPMG’s audit reports were reviewed on 10 March 2016 by the Audit Committee and in the Supervisory Board plenary session. The auditors participated in these discussions and pre-sented the main results from the audit. No material weaknesses in the internal financial reporting control process were discovered. There were no circumstances that might give cause for concern about the auditor’s independence.


On the basis of our own reviews of the annual Allianz SE and consolidated financial statements, the management and group management reports and the recommendation for appropriation of earnings, we raised no objections and agreed with the results of the KPMG audit. We approved the Allianz SE and consolidated financial statements prepared by the Board of Management. The company’s financial statements are therefore adopted. We agree with the Board of Manage-ment’s proposal on the appropriation of earnings.

The Supervisory Board would like to thank all Allianz Group employees for their great personal commitment over the past year.

mEmBErS Of thE SupErviSOry BOard and BOard Of manaGEmEntMr. Franz Heiß retired on 31 July 2015 and thus stepped down from his position as employee representative on the Supervisory Board of Allianz SE. The Supervisory Board thanked Mr. Heiß and expressed its appreciation of his efforts during his period of office. Mr. Jürgen Lawrenz replaced Mr. Heiß as elected employee representative on the Supervisory Board of Allianz SE with effect from 1 August 2015. The current term of the Supervisory Board will expire following the 2017 AGM.

The fiscal year 2015 also saw personnel changes within Allianz SE’s Board of Management. Mr. Michael Diekmann left the Board of Management with effect from 6 May 2015. Mr. Oliver Bäte took over as Chairman of the Board of Management with effect from 7 May 2015. Mr. Manuel Bauer left the Board of Management with effect from 31 August 2015 and his areas of responsi-bility were allocated to other Board departments.

Munich, 10 March 2016

For the Supervisory Board:

Dr. Helmut Perlet Chairman


A To our Investors


Dr. HElmut PErlEtChairmanFormer Member of the Board of Management of Allianz SE

Dr. Wulf H. BErnotatVice ChairmanFormer Chairman of the Board of Management of E.ON AG

rolf ZimmErmannVice Chairman Chairman of the (European) SE Works Council of Allianz SE

DantE BarBanEmployee of Allianz S.p.A.

CHriStinE BoSSEFormer Chief Executive Officer of Tryg A/S

GaBriElE BurkHarDt-BErGChairwoman of the Group Works Council of Allianz SE

JEan-JaCquES CEttEChairman of the Group Works Council of Allianz France S.A.

ira GloE-SEmlErRegional Representative Financial Services of ver.di Hamburg

franZ HEiSSuntil 31 July 2015Employee of Allianz Beratungs- und Vertriebs-AG

Prof. Dr. rEnatE köCHErHead of “Institut für Demoskopie Allensbach”(Allensbach Institute)

JürGEn laWrEnZsince 1 August 2015Employee of Allianz Managed Operations & Services SE

Jim HaGEmann SnaBEChairman of World Economic Forum USA

PEtEr DEniS SutHErlanD Former Chairman of the Board of Directors of Goldman Sachs International

Supervisory Board


Board of Management

Dr. CHriStof maSCHEr Dr. WErnEr ZEDEliuS(from left to right)

olivEr BätE Dr. HElGa JunG SErGio BalBinot(from left to right)


A To our Investors


Jay ralPH Dr. axEl tHEiS(from left to right)

Dr. DiEtEr WEmmEr Dr. maximilian ZimmErEr(from left to right)


olivEr BätEChairman of the Board of Management since 7 May 2015Global Property-Casualtyuntil 6 May 2015

miCHaEl DiEkmannuntil 6 May 2015Chairman of the Board of Management

SErGio BalBinotInsurance Western & Southern EuropeInsurance Middle East, Africa, Indiasince 1 September 2015

manuEl BauEruntil 31 August 2015Insurance Growth Markets

Dr. HElGa JunGInsurance Iberia & Latin America, Legal & Compliance, Mergers & Acquisitions

Dr. CHriStof maSCHErOperations, Allianz Worldwide Partners

Jay ralPHAsset Management, US Life Insurance

Dr. axEl tHEiSGlobal Insurance Lines & Anglo Markets Global Property-Casualtysince 7 May 2015

Dr. DiEtEr WEmmErFinance, Controlling, Risk

Dr. WErnEr ZEDEliuSInsurance German Speaking CountriesInsurance Central & Eastern Europesince 1 September 2015

Dr. maximilian ZimmErErInvestments, Global Life/HealthInsurance Asia Pacificsince 1 September 2015

Board of Management


bMAnAgeMent RepoRt of AlliAnz Se


MAnAgeMent RepoRt of AlliAnz Se

pages 16 – 68

17 Executive Summary and Outlook17 Earnings summary19 Proposal for appropriation of net earnings19 Economic outlook20 Insurance industry outlook20 Business outlook21 Management’s overall assessment of the current economic situation

of Allianz SE

22 Operations by Reinsurance Lines of Business

24 Balance Sheet Review24 Condensed balance sheet24 Investments24 Receivables24 Shareholders’ equity25 Insurance reserves and other provisions25 Financial liabilities

26 Liquidity and Funding Resources26 Liquidity management and funding of Allianz SE

27 Risk and Opportunity Report27 Allianz SE risk profile and management assessment28 Capitalization29 Internal risk capital framework31 Internal risk assessment36 Risk governance 38 Risk management priorities for 201638 Further future challenges and opportunities

40 Corporate Governance Report40 Corporate Constitution of the European Company (SE)40 Function of the Board of Management41 Principles and function of the Supervisory Board44 Shares held by members of the Board of Management

and the Supervisory Board44 Directors’ dealings44 Annual General Meeting44 Accounting and auditing44 Outlook

45 Statement on Corporate Manage ment pursuant to § 289a of the HGB

45 Declaration of conformity with the German Corporate Governance Code 45 Corporate governance practices46 German Act on Equal Participation of Women and Men

in Executive Positions in the Private and the Public Sector

47 Remuneration Report47 Allianz SE Board of Management remuneration 58 Remuneration of the Supervisory Board

61 Other Information61 Our steering62 Progress in Sustainable Development64 Branches65 Events after the balance sheet date65 Takeover-related statements and explanations67 Internal controls over financial reporting 68 Risk capital controls


B Management Report of Allianz SE

17 Executive Summary and Outlook 22 Operations by Reinsurance Lines

of Business

24 Balance Sheet Review 26 Liquidity and Funding Resources 27 Risk and Opportunity Report

40 Corporate Governance Report 45 Statement on Corporate Management

pursuant to § 289a of the HGB

47 Remuneration Report 61 Other Information

Executive Summary and Outlook − Net income rose by 14 % from € 3,123 MN to € 3,554 MN. − Proposed dividend of € 7.30 per share.

Earnings summaryCondEnSEd inComE StatEmEnt

€ mn2015 2014

Gross premiums written 8,328 7,084Premiums earned (net) 7,183 5,685Claims (net) (4,907) (3,814)Underwriting expenses (net) (2,065) (1,634)Other technical reserves (net) 13 9Net underwriting result 224 246Change in claims equalization and similar reserves (193) (147)Net technical result 31 99Investment result 6,009 4,606Allocated interest return (60) (56)Other non-technical result (2,782) (1,697)Non-technical result 3,167 2,853Net operating income 3,198 2,952Taxes 356 171Net income 3,554 3,123

nEt undErwritinG rESult In 2015, as in previous years, Allianz SE continued to follow its selec-tive and prudent underwriting approach. The overall portfolio of Allianz SE grew substantially in 2015 due to a new quota share agree-ment with the head office of Allianz Global Corporate & Speciality SE – excluding its foreign branches (hereafter AGCS Munich). This new quota share has a cession rate of 100 % of the total net portfolio of AGCS Munich.

Gross premiums written increased to € 8,328 MN. This increase was mainly due to the new quota share agreement with AGCS Munich, that contributed gross premiums written of € 1,251 MN. The develop-ment of the existing portfolio was stable with € 7,077 MN (2014: € 7,084 MN). In total, € 7,769 MN (2014: € 6,584 MN) of gross premium came from Property-Casualty reinsurance and € 559 MN (2014: € 500 MN) from Life/Health reinsurance.

The net retention ratio increased to 90.3 % (2014: 85.8 %) due to overall premium growth and an optimized retrocession structure. Premiums earned (net) rose by € 1,498 MN to € 7,183 MN (2014: € 5,685 MN), mainly driven by the growth of gross written premiums and lower retrocessions.

The accident year loss ratio (net) in Property-Casualty reinsur-ance rose to 72.8 % (2014: 68.2 %) as a result of events in several lines of business. Natural catastrophe losses amounted to € 244 MN for the accident year 2015 (2014: € 220 MN). This represented a negative impact on the accident year loss ratio (net) of 3.6 (2014: 3.9) percent-age points.

natural CataStropHES

€ mnLosses for Allianz SE

Major Events in 2015Storm Niklas, Germany 63New South Wales Storms, Australia 38Sydney Hailstorm, Australia 37Storm Thompson, Germany 21Storm Siegfried, Germany 20Hailstorm Edgar, Germany 16Storm Elon & Felix, Germany 15Other 34Total 244

Losses for Allianz SE

Major Events in 2014Brisbane Hailstorm, Australia 72Hailstorm Ela, Germany & Belgium 61North India Flood 36Hurricane Odile, Mexico 12Snowstorm Japan 10Flood Malaysia 10Other 19Total 220

The positive run-off result increased significantly from € 90 MN to € 324 MN and was mainly influenced by the development of liability reinsurance (€ 112 MN), engineering reinsurance (€ 77 MN), credit and bond reinsurance (€ 55 MN) and marine and aviation reinsurance (€ 38 MN). In total we saw an increased loss ratio (net) in Property-Casualty reinsurance of 68.0 % (2014: 66.6 %).


The expense ratio (net) in Property-Casualty reinsurance increased slightly to 28.9 % (2014: 28.8 %). This was primarily driven by an increase of 0.7 percentage points in the commission ratio to 27.8 % (2014: 27.1 %), largely resulting from the new quota share agreement with AGCS Munich. On the other hand, the administrative expense ratio dropped by 0.6 percentage points to 1.1 % (2014: 1.7 %).

The net underwriting result decreased by 8.8 % from € 246 MN to € 224 MN, mainly because of the increased claims expenses in 2015.

nEt tECHniCal rESult In 2015, a change in claims equalization and similar reserves of € 193 MN (2014: € 147 MN) was triggered by the substantial premium growth as well as the still positive underwriting result. The strength-ening arose mainly from liability reinsurance (€ 120 MN) and other reinsurance lines (€ 119 MN). The overall upturn was partially offset by a release in fire reinsurance (€ 44 MN) driven by above-average claims.

The net technical result amounted to € 31 MN (2014: € 99 MN).

non-tECHniCal rESult

Investment result

€ mn2015 2014 Change

Investment incomeIncome from profit transfer agreements 3,001 2,091 910Income from affiliated enterprises and participations 3,820 3,132 688Income from other investments 945 895 50Realized gains 361 158 203Income from reversal of impairments 3 141 (138)Subtotal 8,130 6,417 1,713Investment ExpensesExpenses for the management of investments, interest and other investment-related expenses (1,122) (1,216) 94Depreciation and impairments of investments (594) (230) (364)Realized losses (184) (91) (93)Expenses for losses taken over (221) (274) 53Subtotal (2,121) (1,811) (310)Total 6,009 4,606 1,403

The investment result increased by € 1,403 MN to € 6,009 MN.Income from profit transfer agreements rose by € 910 MN to

€ 3,001 MN, primarily due to higher profit transfers from Allianz Global Corporate & Specialty SE and Allianz Deutschland AG, which grew by € 610 MN to € 686 MN and by € 264 MN to € 1,934 MN. The overall increase was also partly attributable to a higher profit transfer of Allianz Asset Management AG which went up by € 51 MN to € 373 MN.

Income from affiliated enterprises and participations increased by € 688 MN to € 3,820 MN, mainly because the dividend payment received from our subsidiary Allianz Europe B.V. rose by € 950 MN to € 3,450 MN in 2015. This was partly offset by lower dividend payments from other affiliated enterprises.

Income from other investments grew by € 50 MN to € 945 MN, par-ticularly because interest income from intra-group loans was up by € 55 MN to € 414 MN.

Realized gains increased by € 203 MN to € 361 MN, primarily due to higher realized gains resulting from the sale of bonds, which went up by € 194 MN to € 331 MN.

Income from reversal of impairments declined by € 138 MN to € 3 MN as we recorded only marginal write-ups related to our bond portfolio in 2015.

Expenses for the management of investments, interest and other investment-related expenses were further reduced by € 94 MN to € 1,122 MN, mainly due to lower interest expenses as a result of lower refinancing rates for the rollover of matured debt instruments.

Depreciation and impairments of investments rose by € 364 MN to € 594 MN. The impairments in 2015 were particularly attributable to the write-down of shares in our subsidiary Allianz Life Insurance Company Ltd. Korea (€ 350 MN) and to impairment charges on our bond portfolio (€ 222 MN).

Realized losses increased by € 93 MN to € 184 MN, mainly stem-ming from the sale of bonds (€ 92 MN) and the redemption of an intra-group bond at fair value prior to maturity (€ 81 MN).

Expenses for losses taken over declined by € 53 MN to € 221 MN. This was primarily due to lower losses taken over from our service provider Allianz Managed Operations & Services SE, which decreased by € 38 MN to € 214 MN.

Other non-technical resultThe other non-technical result deteriorated by € 1,085 MN to € (2,782) MN. This resulted from an increase of interest expenses on pensions and long-term provisions to the amount of € 434 MN. Furthermore, the renegotiation of the pension cost allocation contract with the Ger-man subsidiaries had a significant impact on the other non-technical result. The expenses due to the adjusted contract amounted to € 634 MN and were only partly compensated by an income amounting to € 406 MN. Additionally, the result from derivatives contributed to the decline of the other non-technical result by € 318 MN. For further information regarding other income and expenses please refer to note 23.




of Business





taxES and nEt inComEAs far as legally permissible, Allianz SE acts as the controlling com-pany (“Organträger”) of the German tax group most German sub-sidiaries belong to. As the controlling company, Allianz SE is liable for the income taxes of this German tax group.

After being offset against tax losses, the current tax charge of Allianz SE amounted to € 306 MN. Thereby, Allianz SE received a tax allocation of € 664 MN (2014: € 512 MN) by Allianz SE tax group compa-nies that recorded taxable income. After deduction of other taxes the tax income amounted to € 356 MN (2014: € 171 MN).

The increase of the net income by € 431 MN to € 3,554 MN (2014: € 3,123 MN) is primarily driven by the significant rise of the invest-ment result by € 1,403 MN to € 6,009 MN. This was partly offset by the deterioration of the other non-technical result by € 1,085 MN to € (2,782 MN).

Proposal for appropriation of net earningsThe Board of Management and the Supervisory Board propose that the net earnings (“Bilanzgewinn”) of Allianz SE of € 4,228,626,130.21 for the 2015 fiscal year shall be appropriated as follows:

− Distribution of a dividend of € 7.30 per no-par share entitled to a dividend: € 3,320,374,442.20

− Unappropriated earnings carried forward: € 908,251,688.01

The proposal for appropriation of net earnings reflects the 2,154,186 treasury shares held directly and indirectly by the company at the time of the publication of the convocation of the Annual General Meeting in the Federal Gazette. Such treasury shares are not entitled to the dividend pursuant to § 71b of the German Stock Corporation Act (AktG). Should there be any change in the number of shares en titled to the dividend by the date of the Annual General Meeting, the above proposal will be amended accordingly and presented for resolution on the appropriation of net earnings at the Annual Gen-eral Meeting, with an unchanged dividend of € 7.30 per each share entitled to dividend.

Economic outlookAt the beginning of 2016, the global economic picture is, broadly speaking, split between industrialized countries and emerging mar-kets. On the one hand, economic activity in industrialized countries is likely to remain quite solid. In the United States, domestic demand looks set to firm up further. In the Eurozone, the economic recovery is likely to continue, supported by improved competitiveness and lower energy prices. With real gross domestic product expected to increase by 1.7 %, growth will be slightly higher than in 2015. Supported by improving economic conditions in the Eurozone and a favorable environment for private consumption, the German economy could expand by more than 2 % in 2016. On the other hand, growth prospects for several major emerging market countries remain subdued – for both cyclical and structural reasons. Following a severe recession in Brazil and Russia last year, economic activity is expected to gradually stabilize in the course of 2016. Overall, global output is likely to expand by about 2.7 % in 2016, compared with 2.4 % in 2015. Industrial-ized countries are expected to register gross domestic product growth of 2.0 %, while in emerging markets it could increase to 3.7 % from the 3.3 % seen in 2015, which was the lowest economic expansion since the great recession of 2009. At the global level, inflation is likely to remain very low, with a few exceptions in Latin America and Eastern Europe, where inflation rates have risen sharply for country-specific reasons (for example in Venezuela and in Ukraine).

As in 2015, financial markets will primarily be driven by mone-tary policy and geopolitical tensions, but also by economic and polit-ical developments in major emerging market countries such as China. On the monetary policy front, the Federal Reserve is likely to continue to hike interest rates very cautiously this year. By contrast, the European Central Bank is expected to keep key interest rates at present or even lower levels throughout 2016. We also do not see any trimming of the European Central Bank’s unconventional measures before the end of this year.

Slightly rising yields on 10-year U.S. government bonds, along with growing speculation towards year-end about the timing and manner in which the European Central Bank exits from its bond-purchasing program in 2017, will exert some upward pressure on European government benchmark bond yields. However, with short-term rates practically at zero, there are limited prospects of markedly higher yields on longer-term bonds. We predict yields on 10-year German and U.S. government bonds to climb modestly towards 1 % and around 2 %, respectively, by the end of 2016. In the coming months a number of factors, including the expected rate increases by the Fed-eral Reserve, will weigh on the Euro. However, with the economic recovery in the Eurozone on a firmer footing, the Euro will gain sup-port. We expect the year-end U.S. Dollar to Euro exchange rate to be marginally above last year’s closing level of 1.09.


Business outlookOur outlook assumes no significant deviations from the following underlying assumptions:

− Global recovery to continue. − Modest rise in interest rates expected. − No major disruptions of capital markets. − No disruptive fiscal or regulatory interference. − Level of claims from natural catastrophes at expected average

levels. − Average U.S. Dollar to Euro exchange rate of 1.11.

Allianz SE provides a wide range of reinsurance coverage, primarily to Allianz insurance entities (Group internal business), but also to third-party customers (external business). This includes Property-Casualty as well as Life/Health business on both a proportional and a non-proportional basis. Due to the broad spread of exposures under-written by types of business and geography, Allianz SE’s port folio is well diversified.

Allianz SE and its subsidiaries (the Allianz Group) use Allianz SE, in particular, as a vehicle for actively managing their overall exposure to natural catastrophes. Within a Group-wide risk management framework, each operating entity is responsible for controlling its exposure to individual catastrophes and defining its local reinsu-rance requirements, based on its local risk appetite and capital posi-tion. The respective cover is then provided by Allianz SE or one of its subsidiaries. At the Group level, the Allianz SE Board reviews and approves the risk appetite. The reinsurance division is then respon-sible for designing and implementing Group catastrophe protections within given exposure limits. These covers take various forms and aim to protect the Group against excessive losses from major natural catastrophes. However, there is still the potential for an unexpected frequency and/or severity of catastrophic events in any year that may materially impact the results of Allianz SE. The top five residual risk exposures at the Group level are summarized on page 34.

Insurance industry outlook2016 is set to become another challenging year for the insurance industry. The big picture – characterized by only modest premium growth, low interest rates, volatile financial markets, new regulatory burdens and digital transformation – will not change. As a conse-quence, industry profitability will remain under pressure and restruc-turing will gather pace.

However, that does not mean 2016 will be identical to the previ-ous year. For example, we expect to see interest rates starting to rise – but only slightly: overall, the interest rate environment will con-tinue to present a headwind for the industry. Another important change is the implementation of Solvency II in Europe. This brings more clarity on capital positions, acting as a possible catalyst for more industry consolidation. High pent-up demand, accommodative government policies – in particular in the life sector – and general trends like urbanization continue to underpin relatively strong insur-ance premium growth in emerging markets. Therefore, we expect these markets to outgrow advanced markets in the foreseeable future, although our outlook has become more cautious.

In the property-casualty sector, we anticipate stable premium growth in advanced markets. While the ongoing recovery will support demand, pricing is becoming a growing concern. Despite the region-wide economic pickup, Western Europe is set to remain the laggard in terms of global premium growth. On the other hand – as in previous years – we expect very strong performances in emerging Asia. There, government efforts – particularly in China – to raise insurance pene-tration across the board are starting to pay off. Overall, we expect global premium revenue to rise between 4.0 % and 5.0 % in 2016 (in nominal terms, adjusted for foreign currency translation effects); a good one percentage point of this is attributable to China alone. Due to the challenging pricing outlook, underwriting profitability may come under pressure, especially if financial losses resulting from natural catastrophes return to historical averages. At the same time, investment returns will remain weak, despite the expected rise in interest rates.

In the life sector, the overall picture is quite similar – although pre-mium growth is much more volatile than in the property-casualty sector. In the coming year, this volatility may be exacerbated further by new regulations, changing government policies and ensuing shifts in the product mix. One thing, however, is unlikely to change: The highest premium growth is expected in emerging Asia, where coun-tries such as China and Indonesia should continue with high, in many cases double-digit growth. Rising incomes and social security reforms remain strong engines for growing insurance demand. All in all, we expect global premium revenue to rise in the 4.0 – 5.0 % range in 2016 (in nominal terms, adjusted for foreign currency translation effects).

Looking at profitability, there is no expected relief from the pains associated with the low yield environment and regulation. As a result, the rebalancing of investment portfolios will continue as well as the shift in the product mix. New, less capital-intensive products, mixing unit-linked product characteristics with some sort of return guaran-tees, will increasingly replace the old-style savings products. At the same time, mastering the digital transformation is becoming more and more crucial. This mix of strategic challenges will not only spur industry consolidation but could also act as a drag on overall profit-ability.




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The non-life reinsurance market remains competitive due to an influx of alternative capital and the strong capitalization of tradi-tional reinsurers. The results of renewals as of 1 January 2016 were below the prior year’s level, with prices in the assumed business fur-ther softening and only partially compensated by lower prices in the outgoing reinsurance.

Allianz SE’S technical result depends largely on Group internal cessions resulting from net quota shares with European Allianz enti-ties. We expect an increase in net premiums and in the net under-writing result in 2016 due to several new quota share agreements with European Allianz entities. Based on our estimations and our know-ledge of the new portfolios, we expect an increased combined ratio for 2016. It should be noted that, in extreme cases, the actual result may vary significantly as the reinsurance business is, by nature, vola-tile in terms of frequency and severity of losses.

For 2016 we predict a further increase in net income. Based on our current planning, this may involve a year-on-year shift in earning contributions between the investment result and the other non-tech-nical result. We currently expect a declining investment result. However, as things stand, this decline will be more than offset by an improved other non-technical result. We are not currently planning a specific currency rate result, nor are we able to anticipate any net gains/losses from derivatives. This could impact the net income of Allianz SE considerably. Given the susceptibility of our non-technical result to adverse capital market developments, we do not provide a precise outlook for net income. Nevertheless, we are ultimately plan-ning and managing the Allianz SE result in line with the dividend policy1 of the Allianz Group. To this end, we take advantage of the opportunity to make targeted use of the dividends of our subsidiaries, in particular those of Allianz Europe B.V., in order to generate net earnings for Allianz SE that make up at least 50 % of the Group result.

1 For more detailed information on the dividend policy, see the Allianz Group’s Annual Report 2015 and www.allianz.com/dividend.

Management’s overall assessment of the current economic situation of Allianz SEOverall, at the date of issuance of this Annual Report and given cur-rent information regarding natural catastrophes and capital market trends – in particular foreign currency, interest rates and equities – the Board of Management has no indication that Allianz SE is facing any major adverse developments.

Cautionary note regarding forward-looking statementsThe statements contained herein may include prospects, statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results, perfor-mance or events may differ materially from those expressed or implied in such forward-looking statements.

Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group’s core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (iii) frequency and severity of insured loss events, including from natural catas-trophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisi-tions, including related integration issues, and reorganization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

No duty to updateThe company assumes no obligation to update any information or forward-looking statement contained herein, save for any information required to be disclosed by law.

www.allianz.com/dividend


Gross premiums written increased significantly by 17.6 % to € 8,328 MN (2014: € 7,084 MN). This was mainly due to a new quota share with AGCS Munich with gross premiums written of € 1,251 MN. This quota share had several impacts on the overall reinsurance portfolio – espe-cially in liability reinsurance, marine and aviation reinsurance and

GroSS prEmiumS writtEn and nEt tEchnical rESult by rEinSurancE linES of buSinESS

Gross premiums writtenCombined ratio

Property-Casualty

Change in claims equalization and similar reserves Net technical result

2015 2014 Change 2015 2014 2015 2014 2015 2014€ mn € mn %1 % % € mn € mn € mn € mn

Fire and property reinsurance 2,419 2,066 17.1 98.5 96.4 44 28 73 82thereof:

Household and homeowner 576 628 (8.3) 90.4 88.4 – – 54 61Fire 506 445 13.7 116.9 110.4 44 28 (13) 1Engineering 492 258 90.6 87.3 96.1 – – 49 8Business interruption 111 85 31.3 95.6 52.6 – – 4 33Other property reinsurance 734 650 12.9 103.5 104.1 – – (21) (21)

Motor 1,995 1,849 7.9 103.7 104.2 12 (24) (54) (93)Liability 1,148 800 43.5 86.2 82.4 (120) (66) 15 40Life 427 419 1.9 n/a n/a – – 33 –Marine and aviation 420 123 240.7 111.6 84.8 20 25 (22) 38Credit and bond 402 290 38.6 91.2 86.2 (26) (19) – 15Personal accident 311 327 (5.1) 86.2 86.8 14 (2) 49 35Legal expenses 212 244 (13.2) 91.1 107.9 (18) 4 1 (13)Health 132 82 61.9 n/a n/a – – (2) 4Other lines 862 884 (2.4) 92.2 87.3 (119) (94) (62) (12)Total 8,328 7,084 17.6 96.9 95.4 (193) (147) 31 99

1 For lines of business on the basis of the accurate, non-rounded amount.

engineering reinsurance. All in all, 88.5 % (2014: 90.7 %) of premiums written were from the Allianz Group’s internal business. In addition, Allianz SE continued to write business from selected external part-ners in order to diversify the internal portfolio.

The household and homeowner reinsurance portfolio decreased slightly, with gross premiums written of € 576 MN (2014: € 628 MN) mainly coming from the business with Allianz Versicherungs-AG and AllSecur Deutschland AG (in the following Allianz Versicherung). The combined ratio nudged up to 90.4 % (2014: 88.4 %) and the net technical result amounted to € 54 MN (2014: € 61 MN).

The fire reinsurance portfolio grew to € 506 MN (2014: € 445 MN) in gross premiums written. This was mainly driven by internal business. The combined ratio increased to 116.9 % (2014: 110.4 %). This develop-ment was mainly influenced by a worse accident year loss ratio due to several man-made losses, which was only partially compensated by a positive run-off result of € 34 MN (2014: € 25 MN). Despite a release of the claims equalization reserve of € 44 MN (2014: € 28 MN), the net technical result dropped to € (13) MN (2014: € 1 MN).

Engineering reinsurance premiums written increased substan-tially to € 492 MN (2014: € 258 MN) due to the new quota share with AGCS Munich. The combined ratio improved significantly to 87.3 % (2014: 96.1 %), mainly driven by the positive run-off result of € 77 MN (2014: € 6 MN) which was partially compensated by a higher accident year claims ratio of 74.9 % (2014: 63.2 %). In total the net technical result increased to € 49 MN (2014: € 8 MN).

Premium revenue from business interruption reinsurance climbed to € 111 MN (2014: € 85 MN). The combined ratio worsened substantially to 95.6 % (2014: 52.6 %), reflecting higher calendar year claims development of € 68 MN (2014: € 25 MN).

Operations by Reinsurance Lines of Business




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pursuant to § 289a of the hGb


Other property reinsurance includes extended coverage for fire and business interruption as well as hail, storm, water damage, live-stock, burglary, and glass reinsurance. Premiums written rose by 12.9 % to € 734 MN (2014: € 650 MN), mainly driven by the new quota share with AGCS Munich and external business written in the Asia-Pacific region. The combined ratio improved slightly by 0.6 percen tage points to 103.5 %. The net technical result remained negative € (21) MN (2014: € (21) MN).

Premiums written in motor reinsurance grew by 7.9 % to € 1,995 MN (2014: € 1,849 MN). The combined ratio improved slightly to 103.7 % (2014: 104.2 %) due to a positive development in the accident year claims ratio of 79.2 % (2014: 80.2 %) and a decrease in the expense ratio by 1.1 percentage points to 23.9 % (2014: 25.0 %). This was partially off-set by a run-off result of € (9) MN (2014: € 16 MN). The still negative but improved net technical result of € (54) MN (2014: € (93) MN) was also influenced by the release of the equalization reserves with an amount of € 12 MN (2014: € (24) MN).

Premiums written for liability reinsurance rose significantly to € 1,148 MN (2014: € 800 MN) – mainly on the new quota share with AGCS Munich. The combined ratio of 86.2 % (2014: 82.4 %) was mainly influ-enced by the higher accident year claims ratio of 67.4 % (2014: 56.2 %) and a higher expense ratio (4.7 percentage points), which was par-tially compensated by a positive run-off result of € 112 MN. The pre-mium increase as well as the positive result triggered a strengthening of the equalization reserves of € 120 MN (2014: € 66 MN) and a net tech-nical result of € 15 MN (2014: € 40 MN).

In life reinsurance, the premium revenue grew to € 427 MN (2014: € 419 MN), primarily due to new capital management transactions in the Asia-Pacific region. The expense ratio dropped by 2.1 percentage points to 27.0 %. The net technical result amounted to € 33 MN (2014: € 0 MN).

The premium revenue in marine and aviation reinsurance more than doubled to € 420 MN (2014: € 123 MN) due to the new quota share with AGCS Munich with an impact of € 309 MN. The combined ratio deteriorated by 26.8 percentage points to 111.6 %, reflecting a higher accident year loss ratio of 94.2 % (2014: 74.5 %). This development caused a further release of € 20 MN in equalization reserve and the net technical result turned negative with € (22) MN (2014: € 38 MN).

Gross premiums written in credit and bond reinsurance rose substantially by € 112 MN to € 402 MN, mainly driven by increased business with Euler Hermes Reinsurance AG. The combined ratio deteriorated to 91.2 % (2014: 86.2 %), mainly influenced by a higher expense ratio of 33.9 % (2014: 28.0 %). A further strengthening of equal-ization reserves by € 26 MN (2014: € 19 MN) reduced the net technical result to € 0 MN (2014: € 15 MN).

The personal accident reinsurance gross premium revenue slightly decreased to € 311 MN (2014: € 327 MN), mainly driven by lower premiums ceded by Allianz Versicherung. The combined ratio improved to 86.2 % (2014: 86.8 %), mainly influenced by higher run-off income of € 17 MN (2014: € 12 MN). A release of € 14 MN in equalization reserves led to an increased net technical result of € 49 MN (2014: € 35 MN).

The premium revenue of legal expenses reinsurance dropped by 13.2 % to € 212 MN (2014: € 244 MN) largely driven by lower premiums ceded by Allianz Versicherung. The combined ratio improved sub-stantially to 91.1 % (2014: 107.9 %). This was mainly because of lower accident year losses and lower underwriting expenses which also triggered a strengthening of the equalization reserve of € 18 MN. Despite this, the net technical result turned positive at € 1 MN (2014: € (13) MN).

Gross premiums written for health reinsurance expanded to € 132 MN (2014: € 82 MN). However the net technical result turned negative to € (2) MN (2014: € 4 MN).

In other reinsurance lines, premium revenue declined by € 22 MN to € 862 MN (2014: € 884 MN). The combined ratio increased by 4.9 per-centage points to 92.2 % (2014: 87.3 %) impacted by run off loses with an amount of € (14) MN (2014: € 26 MN). The net technical result remained negative at € (62) MN (2014: € (12) MN), due to an increase of equalization reserves by € 119 MN (2014: € 94 MN).

Other reinsurance lines include:

− Emergency assistance, − Fidelity & political risk, − Motor extended warranty, − Other property and casualty business.


Balance Sheet Review − Shareholders’ equity rose slightly to € 45.0 BN. − Balance sheet total increased by € 7.9 BN to € 114.3 BN.

Condensed balance sheet

€ mnas of 31 December 2015 2014

aSSEtSIntangible assets 19 42Investments 107,787 100,957Receivables 5,290 4,656Other assets 791 374Deferred charges and prepaid expenses 423 364Total assets 114,310 106,393

Equity and liabilitiESShareholders’ equity 44,978 44,454Subordinated liabilities 12,340 11,741Insurance reserves net 13,168 9,851Other provisions 7,500 6,655Funds held with reinsurance business ceded 63 61Payables on reinsurance business 231 383Other financial liabilities 36,018 33,232Deferred income 12 16Total equity and liabilities 114,310 106,393

Investments


Real estate 254 258Investments in affiliated enterprises and participations 73,711 71,170Other investments 27,727 26,472Funds held by others under reinsurance business assumed 6,095 3,057Total investments 107,787 100,957

The book value of investments in affiliated enterprises and participa-tions increased by € 2.5 BN to € 73.7 BN as a result of a higher book value of shares in affiliated enterprises (€ 2.5 BN). More details regard-ing this position are explained in note 4 to our financial statements.

Other investments went up from € 26.5 BN to € 27.7 BN due to higher investments in debt securities (€ 3.0 BN) and investment funds (€ 0.2 BN). This was partly offset by a decline in investments in loans (€ 1.9 BN) and deposits with banks (€ 0.1 BN). At the end of 2015, € 23.7 BN of the total of other investments were invested in fixed income secu-rities, of which € 9.6 BN were government bonds. We increased our overall government bond exposure by € 1.3 BN compared to year-end 2014, thereby increasing our sovereign debt exposure in Spain from € 0.1 to € 0.5 BN while leaving our investments in Italian government bonds unchanged at a volume of € 0.8 BN.

Funds held by others under reinsurance business assumed increased to € 6.1 BN (2014: € 3.1 BN) mainly driven by the new quota share with AGCS Munich.

As of 31 December 2015, the fair value of investments amounted to € 115.5 BN (2014: € 110.0 BN) compared to a carrying amount of € 107.8 BN (2014: € 101.0 BN).

ReceivablesTotal receivables increased from € 4.7 BN to € 5.3 BN driven by other receivables of € 0.6 BN, while the account receivables on reinsurance business nearly remained unchanged.

The increase in other receivables mainly resulted from higher intra-group receivables of € 0.8 BN primarily stemming from higher profit transfers. Compared to this, a prior year intra-group receivable from Allianz Finance II Luxembourg was settled by a dividend refund of € 0.2 BN in the fiscal year.

Shareholders’ equityAs of 31 December 2015, our shareholders’ equity amounted to € 45.0 BN (2014: € 44.5 BN). The net increase of € 0.5 BN was primarily due to net earnings in 2015 being higher than the dividend paid in 2015.

In the fiscal year 2015, no capital increase from authorized capi-tal was performed for the Employee Stock Purchase Plan. Instead, the shares were taken from own shares held. The issued capital remained unchanged in the fiscal year.

The Board of Management proposes to use the net earnings of € 4,229 MN for dividend payments in the amount of € 3,320 MN. The unappropriated earnings of € 909 MN will be carried forward.




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pursuant to § 289a of the HGb


dEvElopmEnt of SHarEHoldErS’ Equity and of iSSuEd SHarES

Issued shares Issued capital

Mathematical value of

own sharesAdditional

paid-in capitalRevenue reserves Net earnings 31 December

Number € tHou € tHou € tHou € tHou € tHou € tHou

as of 31 December 2014 457,000,000 1,169,920 (7,043) 27,772,828 11,731,605 3,786,746 44,454,056Own shares – – 1,473 – 53,569 – 55,042Own shares: realized gains – – – 26,913 – – 26,913Dividend payment for 2014 – – – – – (3,111,753) (3,111,753)Unappropriated earnings carried forward – – – – – (674,993) (674,993)Net earnings – – – – – 4,228,626 4,228,626

as of 31 December 2015 457,000,000 1,169,920 (5,570) 27,799,741 11,785,174 4,228,626 44,977,891

Insurance reserves and other provisionsFor information on insurance reserves and other provisions please refer to notes 12 and 13 to our financial statements.

Financial liabilitiesAs of 31 December 2015, Allianz SE had the following outstanding financial liabilities:

financial liabilitiES


Intra-group subordinated liabilities 4,869 5,935 Third-party subordinated liabilities 7,471 5,806 Subordinated liabilities 12,340 11,741 Bonds issued to Group companies 3,258 3,652 Liabilities to banks 1,344 –Other intra-group financial liabilities 29,753 27,912 Other third-party financial liabilities 1,663 1,668 Other financial liabilities 36,018 33,232 Total financial liabilities 48,358 44,973

Of these financial liabilities, € 37.9 BN (2014: € 37.5 BN) were intra-group liabilities.

Subordinated liabilities increased to € 12.3 BN (2014: € 11.7 BN). Details regarding this position are explained in note 11 to our financial statements.

Liabilities from bonds issued to Group companies declined to € 3.3 BN (2014: € 3.7 BN). The redemption of bonds totaling € 1.2 BN was partly compensated for by the issuance of new bonds amounting to € 0.8 BN.

Liabilities to banks went up to € 1.3 BN (2014: € 0 BN) due to short-term funding via repurchase agreements.

Other intra-group financial liabilities went up to € 29.8 BN (2014: € 27.9 BN) and were composed of the following positions:

otHEr intra-Group financial liabilitiES


Intra-group loans 20,397 16,433Cash pool liabilities 8,345 10,231Miscellaneous 1,011 1,248Other intra-group financial liabilities 29,753 27,912

An increase in liabilities from intra-group loans by € 4.0 BN to € 20.4 BN was partly offset by lower liabilities from intra-group cash pooling, which decreased by € 1.9 BN to € 8.3 BN, and a decline of miscellaneous intra-group liabilities by € 0.2 BN to € 1.0 BN.

In 2015, other third-party financial liabilities remained stable at € 1.7 BN. While short-term liabilities from unsettled security trans-actions declined by € 0.4 BN to € 0.2 BN, short-term funding through European commercial papers grew by € 0.2 BN to € 1.1 BN and other various third-party financial liabilities increased by € 0.2 BN to € 0.4 BN.


Liquidity and Funding ResourcesLiquidity management and funding of Allianz SE The responsibility for managing the funding needs of the Group as well as maximizing access to liquidity sources and minimizing borrowing costs lies with Allianz SE.

LIQUIDITY RESOURCES AND USESAllianz SE ensures adequate access to liquidity and capital for our operating subsidiaries. Main sources of liquidity available to Allianz SE are dividends and funds received from subsidiaries as well as funding provided by capital markets. Liquidity resources are defined as readily available assets – specifically cash, money market investments and highly liquid government bonds. Funds are primarily used for paying interest expenses on our debt funding, operating costs, internal and external growth investments and dividends to our shareholders.

FUNDING SOURCES Allianz SE’s access to external funds depends on various factors such as capital market conditions, access to credit facilities as well as credit ratings and credit capacity. The financial resources available to Allianz SE are both equity and debt funding. Equity can be raised by issuing ordinary shares. The issuance of debt in various maturities as well as Group-wide liquidity management are the main sources of our debt funding.

Equity fundingAs of 31 December 2015, the issued capital registered at the Commer-cial Register was € 1,169,920,000. This was divided into 457,000,000 registered shares with restricted transferability. As of 31 December 2015, Allianz SE held 2,175,776 (2014: 2,751,360) own shares.

Allianz SE has the option to increase its equity capital base according to authorizations provided by the AGM. The following table outlines Allianz SE’s capital authorizations as of 31 December 2015:

CApITAL AUThORIzATIONS OF ALLIANz SE

CApITAL AUThORIzATION NOmINAL AmOUNTExpIRY DATE OF ThE AUThORIzATION

Authorized Capital2014/I

€ 550,000,000 (214,843,750 shares)

6 May 2019

Authorized Capital2014/II

€ 13,720,000 (5,359,375 shares)

6 May 2019

Authorization to issue bonds carrying conversion and/or option rights

€ 10,000,000,000 (nominal bond value)

6 May 2019 (issuance of bonds)

Conditional Capital 2010/2014

€ 250,000,000 (97,656,250 shares)

No expiry date for Conditional Capital 2010/2014 (issuance in case option or conversion rights are exercised)

For further details on Allianz SE’s capital authorizations, please refer to note 10 of our financial statements.

Debt fundingThe cost and availability of debt funding may be negatively affected by general market conditions or by matters specific to the financial services industry or to Allianz SE. Our main sources of debt funding are senior and subordinated bonds. Among others, money market securities, letter-of-credit facilities and bank credit lines allow Allianz SE to fine-tune its capital structure.

In 2015, we had steady access to debt funding sources, enabling us to actively steer the maturity profile of our funding structure. In January 2015, Allianz SE redeemed a subordinated bond with a volume of € 1.0 BN while issuing in March 2015 a subordinated bond of € 1.5 BN with a scheduled maturity of 30 years, but with ordinary call rights for Allianz after 10 years. Therefore subordinated liabilities increased to € 12.3 BN (2014: € 11.7 BN) at year-end.

Other financial liabilities increased slightly to € 36.0 BN (2014: € 33.2 BN) mainly as a result of higher intra-group liabilities and lia-bilities to banks. For further details on Allianz SE’s financial liabilities, please refer to notes 11 and 14 of our financial statements.




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Risk and Opportunity Report − The Allianz risk management approach is designed to add value by focusing on both risk and return. − Allianz SE is well capitalized and its solvency ratios are resilient.

Allianz SE risk profile and management assessment

RiSk pRofilE and maRkEt EnviRonmEntThe risk profile of the legal entity Allianz SE is primarily dominated by market risk resulting from its non-traded insurance participations when measured in a manner consistent with the treatment of par-ticipations under Solvency II (e.g. without looking through to the underlying risks behind the participations). In order to provide greater transparency, the Group risk figures as reflected in the Allianz Group Annual Report can be interpreted as a ‘look-through’ into the con-solidated risk profile represented by all of the Group’s participations as well as into risks unique to Allianz SE. The second largest risk for Allianz SE from a Solvency II perspective is underwriting risk arising from its reinsurance business.

Allianz SE’s risk profile is driven by our strategic risk appetite and steered by the risk management practices and limits which are described later in this report. The risk profile has changed in 2015 due to changes in the market environment, management actions, and due to model changes driven by regulatory developments as well as by feedback that Allianz received during the internal model approval process. These model changes are described in the section on model changes.

In the following paragraphs we provide an overview of major developments and risks that may affect Allianz SE’s portfolio.

Financial markets and operating environmentThe European Central Bank is continuing its expansive monetary policy in order to fight low inflation rates and stimulate the Eurozone economy. As a result, financial markets are characterized by histori-cally low interest rates and risk premia, prompting investors to look for higher yielding and potentially higher risk investments. In addi-tion to sustained low interest rates, the challenges of implementing long-term structural reforms in key Eurozone countries and the uncertainty about the future path of monetary policy may lead to continued market volatility. This could be accompanied by a flight to quality, combined with falling equity and bond prices due to rising spread levels, even in the face of potentially lower interest rates. Also, possible asset bubbles (as observed in the Chinese equity market) might spill over to other markets, further contributing to increasing

volatility. Therefore, we continue to closely monitor the political and financial developments in the Eurozone – such as in Greece during 2015 – in order to manage our overall risk profile to specific event risks.

The persisting geopolitical risks, including the conflicts in the Middle East, are manageable for Allianz SE, since our direct exposure to the affected regions remains relatively small in the context of our overall participations, investments and reinsurance portfolio. Never-theless, we are monitoring these developments because a significant deterioration may lead to spill-over effects on the global financial markets, triggering negative impacts on our business and risk profile.

Over the past years Allianz SE has developed operational contin-gency plans for various crisis scenarios. We continue to conduct sce-nario analysis on a regular basis to bolster our financial and opera-tional resilience to strong shock scenarios. Continuous monitoring as well as prudent risk positions and contingency planning remain priorities for our management.

Regulatory developments With the approval of our internal model in November 2015, the uncer-tainty about our future Solvency II capital requirements has been significantly reduced.

The Solvency II regime will lead to higher volatility in solvency ratios compared to Solvency I, due to the market value balance sheet approach.

manaGEmEnt aSSESSmEntAllianz SE remains well capitalized from the perspective of current regulatory requirements, as well as from the perspective of Sol-vency II. Allianz SE management is confident that there are effective governance structures, risk controls and action plans in place to remediate the most challenging risks.


CapitalizationFor the benefit of shareholders and policyholders alike, Allianz SE’s aim is to ensure to be adequately capitalized at all times. This includes meeting the Solvency II regulatory capital requirements resulting from the internal model. Furthermore, risk capital and the cost of capital are important aspects to be taken into account in business decisions.

We also take into account the external requirements of rating agencies. Meeting rating agencies’ capital requirements and main-taining strong credit ratings are strategic business objectives of Allianz SE in its capacity as the holding company of the Allianz Group.

We closely monitor the capital position of Allianz SE along each of these dimensions and conduct regular stress tests based on stan-dard adverse scenarios. This allows us to take appropriate measures to ensure our continued capital and solvency strength.

REGulatoRy capital adEquacyAt year-end 2015, the legal entity Allianz SE has a Solvency I regula-tory capital ratio of 3,318 %. Compared to year-end 2014, it was reduced as a result of a significant rise in required funds, mainly due to an increase in the reinsurance quota share with the subsidiary AGCS SE.

allianz SE: SolvEncy i REGulatoRy SolvEncy

€ Bnas of 31 December 2015 2014

Eligible capital 42.3 41.8Requirement 1.3 1.1Solvency ratio 3,318 % 3,970 %

These capital requirements, as well as the definition and calculation of eligible capital, will be replaced by the Solvency II rules once the new regulation becomes binding in January 2016.

ExtERnal RatinG aGEncy capital adEquacyRating agencies apply their own methodology to evaluate the rela-tionship between the required risk capital of a company and its avail-able capital resources. An assessment of capital adequacy is usually an integral part of the rating process. Moody’s, Standard & Poor’s and A.M. Best affirmed their Allianz Group’s ratings in 2015. These ratings also apply to Allianz SE.

RatinGS of allianz GRoup and allianz SE

Ratings1Insurer financial strength rating

Counterparty credit rating

Commercial paper (short-term) rating

2015 2014 2015 2014 2015 2014

Standard & Poor’s

AA Stable

outlook (affirmed

December 2015)

AA Stable

outlook

AA Stable

outlook (affirmed

December 2015)2

AA Stable

outlook

A–1+(affirmed

December 2015)

A–1+

Moody's Aa3 Stable

outlook (affirmed

October 2015)

Aa3 Stable

outlook

Aa3 Stable

outlook (affirmed

October 2015)2

Aa3 Stable

outlook2

Prime –1 (affirmed

October 2015)

Prime –1

A.M. Best A+ Stable

outlook(affirmed

September 2015)

A+ aa– Stable

outlook3(affirmed

September 2015)

aa– Not rated Not rated

1 Includes ratings for securities issued by Allianz Finance II B.V. and Allianz Finance Corporation.2 Rating reflects Senior unsecured debt.3 Issuer Credit rating.

As part of the long-term financial strength rating, Standard & Poor’s has a rating for “Enterprise Risk Management” (ERM). Since 2013 Stan-dard & Poor’s has assigned Allianz its highest possible rating – “very strong” – for the ERM capabilities of our insurance operations. This indicates that Standard & Poor’s regards it as “unlikely that Allianz Group will experience major losses outside its risk tolerance”. Stan-dard & Poor’s stated that the assessment is based on Allianz’s strong risk management culture, strong controls for the majority of key risks, and strong strategic risk management. In addition, Stan-dard & Poor’s has reviewed our internal capital framework annually, starting in 2012. Based on this review Standard & Poor’s has given fur-ther credit to the capital position of the Allianz Group since the fourth quarter of 2012 by taking our internal model results into account when determining the capital requirements in order to meet specific rating classes.

SolvEncy ii REGulatoRy capitalizationAllianz SE’s own funds as well as its capital requirements are based on the market value balance sheet approach as the major economic principle of Solvency II rules1. From 1 January 2016 onwards, Solvency II capitalization will replace the Solvency I capital requirements as the binding regulatory regime. Our objective is to maintain available capital at the Allianz SE level that is significantly above the minimum requirements indicated and consistent with our risk profile, risk appe-tite, and capital management strategy.

1 Own funds and capital requirement are calculated under consideration of volatility adjustment and yield curve extension as described in Allianz Group’s Annual Report 2015.




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allianz SE: SolvEncy ii REGulatoRy capitalization

€ Bnas of 31 December 2015 2014

Own funds 78.0 69.9Capital requirement 20.8 18.9Capitalization ratio 375 % 370 %

As of 31 December 2015, the Solvency II capitalization of the legal entity Allianz SE is at 375 %. The increase by 5 percentage points in 2015 was driven by an increase in own funds, which was partially compensated by a rise in risk capital. The change in risk capital was mainly caused by a higher value of participations in Group compa-nies, the transfer of risk from German internal pension schemes on the balance sheet of Allianz SE, as well as model changes necessary in the context of our internal model application. Impacts of model changes on our risk profile are presented in the section “Internal model changes in 2015”.

RiSk pRofilEWith Solvency II becoming the binding regulatory regime and follow-ing the approval of our internal model, risk is measured and steered based on the risk profile underlying our regulatory solvency capital-ization. This Risk and Opportunity Report outlines Allianz SE’s risk figures, reflecting its risk profile based on pre-diversified risk figures and Allianz SE-diversification effects. Pre-diversified risk figures reflect the diversification effect within each modeled risk category (i.e. market, credit, underwriting, business and operational risk) but does not comprise the diversification effects across risk categories. The Allianz SE-diversified risk also captures the diversification effect across all risk categories.

As of 31 December 2015, the Allianz SE-diversified risk of € 20.8 bn (2014: € 19.6 bn) represented a diversification benefit of approximately 15 % (2014: 15 %) across risk categories.

allianz SE: allocatEd RiSk accoRdinG to intERnal RiSk pRofilE


Market risk 19,588 18,701Credit risk 664 671Underwriting risk 2,962 2,595Business risk 43 33Operational risk 765 752Diversification (3,584) (3,384)Capital add-on 357 187Total Allianz SE 20,795 19,555

1 2014 risk profile figures recalculated based on model changes in 2015, as described in the section “Internal model changes in 2015” from page 31 on.

Detailed discussions of changes in respective risks are provided in the following sections.

Internal risk capital frameworkWe define internal risk capital as the capital required to protect us against unexpected, extreme economic losses, which forms the basis for determining our Solvency II regulatory capitalization and the associated risk profile. On a quarterly basis, we calculate and aggre-gate internal risk capital across all Allianz SE business units, based on a common standard for measuring and comparing risks across the wide range of different activities that we undertake as a reinsurer and as the holding company of Allianz Group.

GEnERal appRoacHWe utilize an internal risk capital model1 for the management of our risk profile and solvency position, reflecting the forthcoming Solven-cy II rules. Our model is based on a best-practice technical platform with an up-to-date methodology covering all modeled sources of quantifiable risks.

intERnal RiSk capital modElOur internal risk capital model is based on a Value-at-Risk (VaR) approach using a Monte Carlo simulation. Following this approach, we determine the maximum loss in the portfolio value of our busi-nesses in the scope of the model within a specified timeframe (“hold-ing period”) and probability of occurrence (“confidence level”). We assume a confidence level of 99.5 % and apply a holding period of one year. In the risk simulation, we consider risk events from all modeled risk categories (“sources of risk”) and calculate the portfolio value based on the net fair value of assets and liabilities under potentially adverse conditions.

Internal risk capital is defined as the difference between the cur-rent portfolio value and the portfolio value under adverse conditions, dependent on the 99.5 % confidence level. Because we consider the impact of a negative or positive event on all sources of risks and cov-ered businesses at the same time, diversification effects across prod-ucts and regions are taken into account. The results of our Monte Carlo simulation allow us to analyze our exposure to each source of risk, both separately and in aggregate. In addition, in particular for market risks, we analyze several pre-defined stress scenarios, based on either historically observed market movements or hypothetical market movement assumptions. This modeling approach, therefore, also enables us to identify scenarios that have a positive impact on our solvency situation.

Yield curve and volatility adjustment assumptionsWhen calculating the fair values of assets and liabilities, the assump-tions made regarding the underlying risk-free yield curve are crucial in determining and discounting future cash flows. We apply the methodology provided by the European Insurance and Occupational Pensions Authority (EIOPA) within the technical documentation

1 Allianz Group uses a partial internal model, into which Allianz SE is integrated.


(EIOPA-BoS-15/035) for the extension of the risk-free interest rate curves beyond the last liquid tenor.1

In addition, we adjust the risk-free yield curves by a volatility adjustment. This is done to better reflect the underlying economics of our business as the cash flows of our insurance liabilities are largely predictable. The advantage of being a long-term investor, therefore, gives us the opportunity to invest in bonds yielding spreads over the risk-free return and earning this additional yield component. Our investment strategy mitigates to a great extent the risk of forced sel ling of debt instruments at a loss prior to maturity. Therefore, we reflect this mitigation in our model, using a volatility adjustment spread risk offset, and view the more relevant risk to be default and migration risk rather than credit spread risk.

Valuation assumption: replicating portfoliosSince efficient valuation and complex, timely analysis is required, we replicate the liabilities of our Life/Health insurance business as well as of our internal pension obligations. This technique enables us to represent all options and guarantees, both contractual and discre-tionary, by means of standard financial instruments. In our risk cal-culation we use the replicating portfolio to determine and revalue these liabilities under all potentially adverse Monte Carlo scenarios.

Diversification and correlation assumptionsOur internal risk capital model considers concentration, accumula-tion and correlation effects when aggregating results at the Allianz SE level. This reflects the fact that not all potential worst-case losses are likely to materialize at the same time. This effect is known as diversi-fication and forms a central element of our risk management frame-work.

We strive to diversify the risks we are exposed to in order to limit the impact of any single source of risk and help increase the chances that positive developments outweigh the negative ones. The degree to which diversification can be realized depends in part on the level of relative concentration of those risks and the joint movement of sources of risk.

Where possible, we derive correlation parameters for each pair of market risks through statistical analysis of historical market data, considering quarterly observations over several years. In case his-torical market data or other portfolio-specific observations are insuf-ficient or not available, correlations are set according to a well-defined, Group-wide process. Correlations are determined by the Correlation Settings Committee, which combines the expertise of risk and business experts. In general, we set the correlation parameters to represent the joint movement of risks under adverse conditions. Based on these correlations, we use an industry-standard approach, the Gaussian copula approach, to determine the dependency struc-ture of quantifiable sources of risk within the applied Monte Carlo simulation.

1 Due to the late availability of the EIOPA publication, the risk-free interest rate term structure used might be slightly different from the one published by EIOPA.

Actuarial assumptionsOur internal risk capital model also includes assumptions on claims trends, liability inflation, mortality, longevity, morbidity, policyholder behavior, expense, etc. We use our own internal historical data for actuarial assumptions wherever possible, leverage expertise of other Group companies in the scope of the internal model and also con-sider recommendations from the insurance industry, supervisory authorities and actuarial associations. The derivation of our actuar-ial assumptions is based on generally accepted actuarial methods. Within our internal risk capital and financial reporting framework, comprehensive processes and controls are in place to ensure the reli-ability of these assumptions.

ScopEBy design, Allianz SE’s internal risk capital model takes into account the following risk categories: market risk, credit risk, underwriting risk, business risk, and operational risk. A further breakdown of the risk categories can be found in the section on internal risk assessment.

Coverage of the internal risk capital modelAllianz SE’s internal risk capital model covers the activities of Allianz SE as the holding company of the Allianz Group, as well as in its capacity as a reinsurer. Whereas most subsidiaries are covered through treatment as participations, the model directly covers the very closely linked activities of 24 subsidiaries, which are either financing entities or service providers. The risk capital model cove-rage includes the relevant assets (including bonds, loans, bank deposits, investment funds, equities and real estate) and liabilities (including the cash flow run-off profile of all technical reserves, as well as issued debt and other liabilities, such as guarantees). For Allianz SE’s internal pension liabilities, options and guarantees embedded in contracts – including surplus participation rules – are taken into account.

LimitationsOur internal risk capital model expresses the potential “worst-case” amount in economic value that we might lose at a certain confidence level. However, statistically there is a low probability of 0.5 % that actual losses could exceed this threshold in the course of one year.

We use model and scenario parameters derived from historical data, where available, to characterize future possible risk events. If future market conditions differ substantially from the past, for exam-ple in an unprecedented crisis, our VaR approach may be too conser-vative or too liberal in ways that are too difficult to predict. In order to mitigate reliance on historical data, we complement our VaR analysis with stress testing. Our ability to back-test the model’s accuracy is limited because of the high confidence level of 99.5 %, the one-year holding period, as well as the limited data available for some insurance risk events, such as natural catastrophes.




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Furthermore, as historical data is used where possible to cali-brate the model, historical data cannot be used for validation. Instead, we validate the model and parameters through sensitivity analyses, independent internal peer reviews and, where appropriate, external reviews by independent consulting firms focusing on meth-ods for selecting parameters and control processes. Overall, we believe that our validation efforts are effective, to the extent that validations are possible, and that our model adequately assesses the risks to which we are exposed.

Insurance liability values in the risk calculation for most of the internal pension schemes are derived from replicating portfolios of standard financial market instruments, in order to allow for effective risk management. This replication is subject to the set of available replicating instruments and might therefore be too simple or too restrictive to capture all factors affecting the change in value of liabi-lities. As with other model components, replications are subject to independent validation and to suitability assessments, as well as to stringent data and process quality controls. Therefore, we believe that the liabilities are adequately represented by the replicating port-folios.

Since the internal risk capital model takes into account the change in the economic fair value of our assets and liabilities, it is crucial to accurately estimate the market value of each item. For some assets and liabilities it may be difficult if not impossible – nota-bly in distressed financial markets – to obtain a current market price or apply a meaningful mark-to-market approach. For such assets we apply a mark-to-model approach. Non-standardized derivative instruments – such as derivatives embedded in structured financial products – are represented by the most comparable standard deriva-tive types or by means of sensitivities, because the volume of non-standard instruments is not material for Allianz SE. For some of our liabilities, the accuracy of fair values depends on the quality of the actuarial cash flow estimates. Despite these limitations, we believe the fair values estimated have been appropriately assessed.

intERnal modEl cHanGES in 2015In 2015, our internal model has been adjusted, based on regulatory developments and the feedback received during the ongoing consul-tations with regulators as part of our internal model approval pro-cess. For the sake of clarity, the model changes and the resulting changes to our risk profile are presented jointly within this section based on data as of 31 December 2014. In all subsequent sections the figures after the model change will form the basis for the movement analysis of our risk profile in 2015.

allianz SE: impact of modEl cHanGES, RiSk pRofilE1


Market risk 18,102 18,701Credit risk 671 671Underwriting risk 2,595 2,595Business risk 33 33Operational risk 684 752Diversification (3,381) (3,384)Capital add-on 187 187Total Allianz SE 18,891 19,555

1 Due to rounding, numbers presented may not precisely reflect the absolute figures.2 2014 risk profile figures as previously reported.3 2014 risk profile figures recalculated based on new model.

Allianz SE was affected by the following major model changes:

Market riskThe market risk capital of Allianz SE increased by € 599 Mn from € 18,102 Mn to € 18,701 Mn. This increase can mainly be attributed to a rise in pre-diversified equity risk of € 579 Mn, together with an increase in pre-diversified foreign exchange risk of € 28 Mn.

This reflects changes in the valuation of Allianz SE’s participations.

Operational riskOperational risk modelling methodology was updated in order to more adequately consider expected operational losses. This change led to an increase in operational risk for Allianz SE of € 68 Mn.

Impact of model changes on eligible own fundsRegulatory and model changes in 2015 resulted in a € 1.1 bn increase of own funds, driven by an increase in participation values, which are predominantly affecting life entities. These changes mainly relate to the valuation of technical provisions.

Internal risk assessmentRiSk pRofilE and RiSk manaGEmEntAs we are the Allianz Group’s holding company and a global rein-surer with risk exposures across different business segments and geographic regions, diversification is key to our business model. Diversification is a key element in managing our risks efficiently by limiting the economic impact of any single event and by contributing to relatively stable results and our risk profile in general. Therefore, our aim is to maintain a balanced risk profile without any dispropor-tionately large risk concentrations and accumulations.

With respect to investments, top-down indicators such as stra-tegic asset allocations are defined and closely monitored to ensure balanced investment portfolios. Furthermore we have a limit system in place. The limits comprise economic limits, in particular financial VaR and credit VaR as derived from the internal model framework,


complemented by stand-alone interest rate and equity sensitivity limits as well as by limits on foreign exchange exposures.

A limits monitoring process ensures that prevailing statutory restrictions regarding the composition of investments for the rein-surance portfolio of Allianz SE are taken into account. In addition, compliance of Allianz SE with Allianz Group guidelines for certain investments, for example concerning the use of derivatives, is con-trolled by the Allianz SE risk control function.

In order to further limit the impact of any financial market changes and to ensure that assets adequately back policyholder lia-bilities, we have additional measures in place. One of these is asset/liability management linked to the internal model framework, that incorporates risks as well as return aspects stemming from our rein-surance obligations.

We also closely monitor the concentration and accumulation of non-market risks on a stand-alone basis (i.e. before diversification effects) within a global limit framework, in order to avoid substantial losses from single events such as natural catastrophes, terror or credit events.

In order to manage counterparty concentration risk, Allianz SE participates in a Group-wide country and obligor group limit management framework (CRisP1), which covers credit and equity exposures and is based on data used by the investment and risk experts at the Group and operating entity levels. This limit framework forms the basis for discussions on credit actions and provides notifi-cation services with a quick and broad communication of credit-related decisions. Clearly defined processes ensure that exposure concentrations and limit utilizations are appropriately monitored and managed.

It is the ultimate responsibility of the Allianz SE Board of Manage-ment to decide upon limit budgets. The Board of Management dele-gates authorities for limit setting and modification to the Group Finance and Risk Committee, which is also the risk committee for Allianz SE, and to the Group Chief Risk Officer, who is also the Chief Risk Officer for Allianz SE, by clearly defining maximum limit amounts. All limits are subject to annual review and approval accor-ding to the delegated authorities.

RiSk BaSEd StEERinGAllianz SE steers its portfolio using a comprehensive view of risk and return (i.e. results based on the internal risk model including sce-nario based analyses are used actively for decision making). On the one hand, economic risk and concentrations are actively restricted by means of limits as outlined above. On the other hand, return on risk capital (RoRC) is a key input in the underwriting of proper-ty & casualty reinsurance business. The latter allows us to identify profitable lines of business and products on a sustainable basis, which provide reasonable profits on allocated risk capital. Therefore, it is a key criteria for capital allocation decisions.

1 Credit Risk Platform.

This shows that the internal model is fully integrated in the business steering of Allianz SE and that its application satisfies the so-called “use-test” under Solvency II.

In the following sections we explain the evolution of the risk pro-file per modeled risk category. All risks are presented on a pre-diver-sified basis and concentrations of single sources of risk are discussed accordingly.

quantifiaBlE RiSkS

Market riskAs an inherent part of our insurance operations, we collect premiums from our customers and invest them in a wide variety of assets. The resulting investment portfolio backs the future claims and benefits to our cedents. For its holding activities (i.e. to cover internal pension liabilities, to invest cash pooled from subsidiaries, and in our capacity as the lender of last resort within Allianz Group), Allianz SE invests mainly into fixed income assets. In addition we invest shareholders’ capital, which is required to support the risks underwritten and the holding activities. Thereby, Allianz SE holds and uses a broad range of financial instruments. As the fair values of our investment portfolios depend on financial markets, which may change over time, we are exposed to market risks.

For the legal entity Allianz SE, the pre-diversified market risk showed a significant increase, mainly driven by a rise in equity and inflation risk.

allianz SE: RiSk pRofilE maRkEt RiSk

pre-diversified, € mnas of 31 December 2015 2014

Interest rate 260 139Inflation 515 330Credit spread 578 427Equity 17,976 17,529Real estate 66 65Currency 193 211Total Allianz SE 19,588 18,701

Interest rate riskThe € 260 Mn interest rate risk capital requirement for Allianz SE mainly arises from fixed rate bonds and loans on the asset side, as well as issued Allianz corporate bonds, reinsurance and pension reserves on the liability side. These risks are managed by interest rate sensitivity limits.

Interest rate risk increased in 2015 by € 121 Mn, due to the transfer of interest rate risk from German pension schemes to the Allianz SE balance sheet.

As of 31 December 2015, Allianz SE’s interest rate-sensitive assets, amounting to a market value of € 37.4 bn, would have gained € 1.7 bn or lost € 2.1 bn in value if interest rates had changed by (100) and +100 basis points, respectively.




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Inflation riskPrimary sources for the € 515 Mn inflation risk of the legal entity Allianz SE in 2015 are reinsurance liabilities and internal pension obligations. The € 185 Mn increase in 2015 mainly reflects the transfer of risk from German pension schemes to Allianz SE.

Equity riskAllianz SE is the ultimate holding entity in the Allianz Group. Partici-pation assets represent approximately 75 % of the total investment assets. Thus, most of the equity risk of Allianz SE is reflecting insur-ance participations. In 2015, Allianz SE’s equity risk increased by € 447 Mn mainly reflecting changes in the value of participations in Group companies.

In 2015, Allianz SE had profit and loss transfer agreements in place with eleven German subsidiaries. These are listed in the appen-dix on page 93. Risk from these contracts is reflected via the risk capital calculation on participations.

Credit spread riskOur internal model framework fully acknowledges the risk of declin-ing market values for our fixed income assets – such as bonds – due to the widening of credit spreads. However, for our risk management and appetite we also take into account the underlying economics of our business model. For example, the application of the volatility adjustment in our internal risk model partially mitigates spread risk as described in the section on yield curve assumptions.

With € 578 Mn, Allianz SE’s credit spread risk is € 151 Mn higher than in 2014. This is mainly explained by an increase in intra-Group loans provided to subsidiaries.

Currency riskBased on our foreign exchange management limit framework, cur-rency risk is monitored and managed at the operating entity and Group level.

In addition to risk from Allianz SE’s non-Euro participations, Allianz SE’s currency risk is driven by its non-Euro reinsurance expo-sure, as well as the use of non-Euro bonds as external financing instruments. Allianz SE’s € 193 Mn currency risk at year-end 2015 mainly reflects net open positions in USD, CHF and TRY. The minor decrease of € 18 Mn in 2015 is mainly caused by changes in the value of non-Euro participations.

Real estate riskDespite the risk of decreasing real estate values, real estate is a suit-able addition to our investment portfolio due to good diversification benefits as well as due to the contribution of relatively predictable cash flows in the long-term. As of 31 December 2015, the real estate risk for Allianz SE is minor (€ 66 Mn).

Credit riskThe Allianz SE monitors and manages credit risk exposures and concentrations to ensure it is able to meet obligations towards our counterparties when they are due.

Credit risk is determined as the potential economic loss in the value of our portfolio due to changes in the credit quality of our counter parts (“migration risk”) or the inability or unwillingness of the counterparty to fulfill contractual obligations (“default risk”). Our internal credit risk-modeling framework covers counterparty risk and country risk. Allianz SE’s counterparty risk arises from our fixed income investments, cash positions, derivatives, structured trans-actions, receivables from debtors, as well as reinsurance recover-ables. Country risk exposure is calculated as cross-border exposure to all obligors domiciled abroad from the perspective of Allianz SE.

The internal credit risk capital model is a state-of-the-art tool which provides bottom-up analysis. The major drivers of credit risk for each instrument are exposure at default, ratings, seniority, col-lateral and maturity. Additional parameters assigned to obligors are migration probabilities and obligor asset correlations reflecting dependencies within the portfolio. Ratings are assigned to single obligors via an internal rating approach which is based on long-term ratings from rating agencies. It is dynamically adjusted, using mar-ket implied ratings and the most recently available qualitative infor-mation.

The loss profile of the portfolio is obtained through a Monte Carlo simulation, taking into account interdependencies and expo-sure concentrations per obligor segment. By managing the credit risk of Allianz SE on the basis of the limit management and credit risk modeling frameworks, we have composed a well-diversified credit portfolio. Our long-term investment strategy enables us to keep our portfolio stable even under adverse market conditions. It also gives us the opportunity to earn planned excess returns throughout the entire holding period of the investments.

Throughout 2015, the credit environment was mostly stable. There were limited rating actions as the economic situation and out-look was already reflected in current rating levels compared to the economic disruptions of previous years.

The credit risk of the legal entity Allianz SE barely changed in 2015.

allianz SE cREdit RiSk


Credit risk 664 671


The following table displays the sensitivities of Allianz SE’s credit risk to certain scenarios: deterioration of credit quality measured by issuer rating1 downgrades and the decline of recovery rates in the event of a default (Loss-Given-Default, LGD). The sensitivities are cal-culated by applying each scenario to all exposures individually but keeping all other parameters constant.

allianz SE: impact of SElEctEd cREdit ScEnaRioS on intERnal cREdit RiSk1

pre-diversified, € mnTotal

as of 31 December 2015 2014

Base case 664 671Rating down by 1 notch 735 715Rating down by 2 notches 855 833lGd up by 10 % 719 720

1 A notch is referred to rating sub-classes, such as “AA+”, “AA”, “AA-” at Standard & Poor’s scale or “Aa1”, “Aa2”, “Aa3” at Moody’s scale.

A major part of the credit risk and of the impact of sensitivity analysis can be allocated to long-term sovereign debt as well as to senior unsecured bonds with lower investment grade borrowers.

Underwriting riskThe underwriting risk of Allianz SE consists of premium and reserve risk from the property and casualty reinsurance business assumed, as well as of biometric risk from both internal pension liabilities and the life and health reinsurance business.

allianz SE: undERwRitinG RiSk


Premium natural catastrophe 272 281Premium non-catastrophe and terror 1,743 1,391Reserve 830 914Biometric 117 9Total Allianz SE 2,962 2,595

Underwriting risk Property-CasualtyOur Property-Casualty reinsurance business is exposed to premium risk related to the current year’s new and renewed business as well as reserve risks related to the business in force.

Both the premium risk and the reserve risk also include exposures from the reinsurance contract on the Euler-Hermes credit insurance and bonding business.

1 Credit risk calculations are based on issuer (borrower) ratings as opposed to issue (instrument) ratings. The difference between issue and issuer ratings is primarily due to collateralization and seniority and is reflected in Loss-Given-Default (LGD).

Premium riskAs part of our Property-Casualty reinsurance business, we receive premiums from our cedents and provide reinsurance protection in return.

Premium risk is subdivided into natural catastrophe risk, terror risk and non-catastrophe risk. We calculate premium risk based on actuarial models that are used to derive claims distributions and consider the features of our reinsurance contracts (e.g. shares, limits, reinstatements and commissions). Premium risk is actively man-aged by Allianz SE. Assessing the risks as part of the underwriting process is a key element of our risk management framework. There are clear underwriting limits and restrictions in place. Excessive risks are mitigated by external reinsurance agreements. All these mea-sures contribute to a limitation on risk accumulation.

Natural disasters, such as earthquakes, storms and floods, re present a significant challenge for risk management due to their accumulation potential and occurrence volatility. In order to mea-sure such risks and better estimate the potential effects of natural disasters, we use special modeling techniques in which we combine portfolio data (such as the geographic distribution and characteris-tics of insured objects and their values) with simulated natural disaster scenarios to estimate the magnitude and frequency of potential losses. For significant exposures where such stochastic models do not exist, we use deterministic, scenario-based approaches to estimate potential losses.

The top five scenarios contributing to the natural catastrophe risk of Allianz SE as of December 2015 were: a windstorm across Europe, a hailstorm in Germany, an earthquake or a tropical cyclone in Australia, as well as a tropical cyclone in Japan.

The € 352 Mn increase in non-catastrophe and terror premium risk of Allianz SE in 2015 can be mainly explained by a material increase in the reinsurance for the Group company AGCS, as well new internal reinsurance quota share business.

Reserve riskWe estimate and hold reserves for reinsurance claims resulting from past events that have not yet been settled. If the reserves are not suf-ficient to cover claims to be settled in the future due to unexpected changes, we would experience losses. The volatility of past claims measured over a one-year time horizon defines our reserve risk.

We constantly monitor the development of reserves for reinsu-rance claims on a line of business level. In addition, Allianz SE con-ducts annual reserve uncertainty analyses based on similar methods as used for reserve risk calculations. Where appropriate, expertise and analyses of other Group entities are leveraged. The Allianz Group performs regular independent reviews of these analyses.

Allianz SE’s € 84 Mn decrease in reserve risk in 2015 reflects the annual update of the model parameterization.




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Underwriting risk Life/HealthUnderwriting risks in Allianz SE’s reinsurance operations and internal pensions (biometric risks) include mortality, disability, morbidity, and longevity risks. Mortality, disability, and morbidity risks are associated with the unexpected increase in the occurrence of death, disability or medical claims on our insurance products. Longevity risk is the risk that due to changing biometric assumptions, the reserves covering life annuities and group pension products might not be sufficient.

We measure these risks within our internal risk capital model by distinguishing between the different sub-components, whenever relevant or material: absolute level, trend, volatility around the best estimate assumptions and pandemic risks.

Life/Health underwriting risk arises from lower profitability than expected due to changes in actuarial parameters. As profitability calculations are based on several parameters – like historical loss information, assumptions on inflation or on mortality and morbidity – the realized parameters may differ from the ones used for calcula-tion. For example, higher inflation than that incorporated in the cal-culations may lead to a loss. However, deviations can also occur in the opposite direction and be beneficial and lead to additional profit. For example a lower morbidity rate than expected will most likely result in lower claims.

Allianz SE’s life and health underwriting risk is dominated by the longevity risk resulting from internal pensions.

The biometric risk of Allianz SE's is € 108 Mn higher than in 2014, which is reflecting the transfer of a German internal pension scheme on the Allianz SE balance sheet in 2015.

Business riskAllianz SE’s business risk consists of cost risk from Property-Casualty reinsurance business, as well as of policy holder behavior risk from both Life-Health and Property-Casualty reinsurance. Reflecting the business model of Allianz SE as primarily a Group-internal reinsurer, business risk is immaterial.

The minor increase in 2015 results from the additional quota share business.

allianz SE: BuSinESS RiSk


Internal business risk 43 33

Operational riskOperational risks represent losses resulting from inadequate or failed internal processes, from personnel and systems, or from external events – including legal and compliance risk but excluding losses from strategic and reputational risk.

Allianz SE’s operational risk management framework focuses on the early recognition and proactive management of operational risks in all first line of defense functions. The Allianz SE risk function iden-tifies and evaluates relevant operational risks and control weaknes ses via a dialogue with the first line of defense functions. Furthermore, operational risk events are collected in a database. In 2015, Allianz SE also delivered internal loss data on an anonymized basis to ORX, a global operational loss data insurance consortium, to improve its internal control system and validate operational risk parameters in the future. An analysis of the causes of internal and external losses exceeding € 1 Mn is carried out to provide comprehensive and timely information to senior management and to share with business entities so they can implement measures aimed at avoiding or reducing future losses.

The risks related to non-compliance or other misconduct are addressed via various dedicated Group-wide compliance programs. In close cooperation with the Risk function of the Allianz SE, the risk mitigating measures are taken and enforced by the Allianz SE compli-ance function. With respect to financial statements, our internal control system is designed to mitigate operational risks.1

Reflecting Allianz SE’s tasks as the holding company of the Allianz Group and a reinsurer, the most important operational risk capital scenarios are in the areas of tax, legal and compliance.

Major failures and disasters at our internal and external out-sourcing providers, which could cause a disruption to our working environment, also represents an operational risk for Allianz SE. Our business continuity and crisis management framework strives to protect critical business functions from these shocks and enables them to carry out their core tasks on time and at the highest standard. Regularly enhanced, business continuity and crisis activities are embedded in the company’s risk management framework.

Allianz works on an ongoing basis on a cyber and information security program to better respond to current external developments and to further strengthen the internal control environment around related operational risks.

Allianz SE’s operational risk capital increased marginally in 2015, caused by an annual parameter update.

allianz SE: opERational RiSk


Operational risk 765 752

1 For additional information regarding our internal control over financial reporting, please refer to Internal controls over financial reporting from page 67.


otHER RiSkSThere are certain risks that cannot be fully quantified using our inter-nal risk capital model. For these risks we also pursue a systematic approach with respect to identification, analysis, assessment, moni-toring, and steering. In general, the risk assessment is based on qua-litative criteria or scenario analyses. The most important of these other risks are strategic, liquidity, and reputational risk.

Strategic riskStrategic risk is the risk of an unexpected negative change in the company’s value arising from the adverse effect of management decisions regarding business strategies and their implementation.

This risk is evaluated and analyzed quarterly in the same way as reputational risk, as described below. To ensure proper implementa-tion of strategic goals in the current business plan, strategic controls are carried out by monitoring respective business targets. We also constantly monitor market and competitive conditions, capital mar-ket requirements, regulatory conditions, etc. to decide whether to make strategic adjustments. In addition, strategic decisions for the legal entity Allianz SE are discussed in various Board of Management level committees (e.g. Group Capital Committee, Group Finance and Risk Committee). The assessment of the associated risks is a funda-mental element in these discussions.

Liquidity riskLiquidity risk is defined as the risk that requirements from current or future payment obligations cannot be met or can only be met on the basis of adversely altered conditions. Liquidity risk can arise prima rily if there are mismatches in the timing of cash flows on the asset and liability side.

The main goal of planning and managing Allianz SE’s liquidity position is to ensure that we are always able to meet payment obliga-tions. To comply with this objective, the short-term liquidity position of Allianz SE is monitored and forecasted on a daily basis. Allianz SE’s short-term liquidity is managed within Allianz SE’s cash pool, which serves as a centralized tool for also investing the excess liquidity of other Group companies. Strategic liquidity planning over time hori-zons of 12 months and three years is reported to the Board of Manage-ment regularly.

The accumulated short-term liquidity forecast is updated daily and is subject to an absolute minimum strategic cushion amount and an absolute minimum liquidity target. Both are defined in order to protect Allianz SE against short-term liquidity crises. As part of our strategic planning, contingent liquidity requirements and sources of liquidity are taken into account to ensure that Allianz SE is able to meet any future payment obligations even under adverse conditions. Major contingent liquidity requirements include non-availability of external capital markets, combined market and catastrophe risk sce-narios for subsidiaries as well as lower than expected profit transfers and dividends from subsidiaries.

In addition Allianz Group launched a project in 2015 to develop an enhanced liquidity risk framework taking stress situations into account and allowing for a Group wide consistent aggregation of liquidity risk. The framework will be rolled out to Allianz SE and other Group companies during 2016 and will further strengthen Allianz SE’s monitoring of stress scenarios.

Reputational riskReputational risk is the risk of an unexpected drop in the value of the Allianz SE share price, the value of the in-force business, or the value of future business caused by a decline in our reputation.

All Allianz SE functions affected cooperate in the identification of reputational risk. Group Communications is responsible for the assess ment of reputational risk for Allianz SE, based on a Group-wide methodology. In 2015, Allianz SE has embedded conduct risk triggers for products and services into the reputational risk management process.

Single reputational risk management decisions are integrated in Allianz SE’s overall risk management framework and reputational risks are identified and assessed as part of the yearly Top Risk Assess-ment, during which senior management also decides on a risk ma nagement strategy and related actions. This is supplemented by quarterly updates. In addition, reputational risk is managed on a case-by-case basis.

Risk governanceRiSk manaGEmEnt fRamEwoRkAs the holding company of Allianz Group and a global reinsurer, we consider risk management to be one of our core competencies. It is therefore an integral part of our business processes. Our risk man-agement framework covers, on a risk-based approach, all business units. It encompasses IT, processes and departments within Allianz SE. The key elements of our risk management framework are:

− Promotion of a strong risk management culture, supported by a robust risk governance structure.

− Consistent application of an integrated risk capital model framework across the business units to protect our capital base and support effective capital management.

− Integration of risk considerations and capital needs into ma nagement and decision-making processes through the attri-bution of risk and allocation of capital to the various business units.




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This comprehensive framework ensures that risks are identified, analyzed, assessed and managed in a consistent manner across Allianz SE. Our risk appetite is defined by a clear risk strategy and limit structure. Close risk monitoring and reporting allows us to detect potential deviations from our risk tolerance at an early stage.

For the benefit of shareholders and policyholders alike, our risk management framework adds value to Allianz SE through the follow-ing four primary components:

Risk underwriting and identification: A sound risk underwriting and identification framework forms the foundation for adequate risk taking and management decisions such as individual transaction approvals and strategic asset allocations. The framework includes risk assessments, risk standards, valuation methods and clear mini-mum standards for underwriting.

Risk reporting and monitoring: Our comprehensive qualitative and quantitative risk reporting and monitoring framework provides senior management with the transparency and risk indicators to help them decide our overall risk profile and whether it falls within dele-gated limits and authorities. For example, risk dashboards, internal risk allocation and limit consumption reports are regularly prepared, communicated and monitored.

Risk strategy and risk appetite: Our risk strategy clearly defines our risk appetite. It ensures that rewards are appropriate for the risks taken and that the delegated authorities are in line with our overall risk-bearing capacity. The risk-return profile is improved through the integration of risk considerations and capital needs into decision-making processes. This also keeps risk strategy and business objec-tives consistent with each other and allows us to take opportunities within our risk tolerance.

Communication and transparency: Finally, transparent and robust risk disclosure provides the basis for communicating this strategy to our internal and external stakeholders, ensuring a sustain-able positive impact on valuation and financing. It also strengthens the risk awareness and risk culture throughout Allianz SE.

RiSk GovERnancE StRuctuREAs a key element of our risk management framework, Allianz SE’s approach to risk governance ensures that our risk profile remains consistent with our risk strategy and our capacity to bear risks.

Supervisory Board and Board of ManagementWithin our risk governance system, the Allianz SE Supervisory Board and Board of Management have both Allianz SE and Group-wide responsibilities and have set up committees to provide them with support. Examples include:

Supervisory BoardThe Risk Committee of the Supervisory Board monitors the effective-ness of the Allianz SE’s risk management and monitoring framework. Furthermore it focuses on risk-related developments as well as gen-eral risks and specific risk exposures.

Board of ManagementThe Board of Management formulates business objectives and a cor-responding, consistent risk strategy. The core elements of the risk framework are set out in the Allianz Group Risk Policy, which is approved by the Board of Management. The Allianz Group Risk Policy also serves as local risk policy for Allianz SE.

The Group Capital Committee supports the Board of Manage-ment with recommendations regarding the capital structure and investment strategy of Allianz SE, including strategic asset alloca-tions for single Allianz SE sub-portfolios.

The Group Finance and Risk Committee (GFRC) ensures over-sight of Allianz SE’s risk management framework, acting as a primary early warning function by monitoring Allianz SE’s risk profile as well as the availability of capital. The GFRC also ensures that an adequate relationship between return and risk is maintained. Additionally, the GFRC defines risk standards, forms the limit-setting authority within the framework set by the Board of Management, and approves major single financing and reinsurance transactions. The GFRC is supported by the Allianz Re Risk Committee on topics relating to the reinsurance business of Allianz SE.

Overall risk organization and roles in risk managementA comprehensive system of risk governance is achieved by setting standards related to organizational structure, risk strategy and appe-tite, written policies, limit systems, documentation and reporting. These standards ensure the accurate and timely flow of risk-related information and a disciplined approach towards decision-making and execution.

As a general principle, the “first line of defense” rests with busi-ness managers in the business units of Allianz SE. They are respon-sible, in the first instance, for both the risks of and returns on their decisions. Our “second line of defense” is made up of our indepen-dent global oversight functions, such as risk, actuarial, compliance, and legal. Audit forms the “third line of defense”. On a periodic basis, Group Audit independently reviews Allianz SE’s risk governance implementation, performs quality reviews of risk processes and tests adherence to business standards, including the internal control framework. Allianz SE is covered for all five functions by dedicated responsibilities at the respective Allianz Group Center departments.


Group RiskThe Allianz Group's Chief Risk Officer also serves as Allianz SE's Chief Risk Officer. Independent risk oversight for Allianz SE is conducted by risk control entities within Group Risk and the Allianz Reinsurance department of Allianz SE.

Other functions and bodiesIn addition to the risk function for Allianz SE, specific Allianz SE legal and compliance and actuarial functions have been established, con-stituting additional components of the second line of defense.

The Allianz SE legal and compliance functions at Group Legal and Compliance seek to mitigate legal risks for Allianz SE with sup-port from other departments. Legal risks include legislative changes, major litigation and disputes, regulatory proceedings, and contrac-tual clauses that are unclear or construed differently by the courts. Compliance risk is the risk of legal or regulatory sanctions, material financial loss, or loss to reputation that an undertaking may suffer as a result of not complying with applicable laws, regulations and administrative provisions. The objectives of these legal and compli-ance functions are to ensure that laws and regulations are observed, to react appropriately to all impending legislative changes or new court rulings, to attend to legal disputes and litigation, and to provide legally appropriate solutions for transactions and business proces ses. In addition, Group Legal and Compliance is responsible for inte grity management, which aims to protect Allianz SE and employees from regulatory risks.

The Allianz SE actuarial function at Group Actuarial contributes towards assessing and managing risks in line with actuarial regula-tory requirements. These risks stem from the risk-taking/mitigating activities involving professional actuarial experience and interaction. The role includes, but is not limited to, the activities of:

− Calculation and oversight of technical reserves for accounting and regulatory purposes,

− Pricing and profitability oversight, − Technical actuarial support of business planning, reporting and

result monitoring, − Contribution to the effective implementation of the risk man-

agement system.

Risk management priorities for 2016In addition to maintaining our high standards and practices in day-to-day risk management and controlling, we have set the following priorities for 2016.

Our first priority is to further strengthen the relevance of our internal model for Allianz SE business decisions, for example by per-forming additional impact analyses on the Allianz SE risk profile for potential transactions.

Concerning regulatory developments, our second priority is to ensure that the Allianz Group meets the emerging requirements for G-SII (Global Systemically Important Insurers). Therefore, Allianz SE will continue to further enhance and strengthen its liquidity risk management framework.

Our third priority is to strengthen our operational risk manage-ment via further integrating Allianz SE’s risk and controls system in line with an Allianz Group initiative.

Further future challenges and opportunities1The success of our business is heavily affected by a variety of global, long-term issues. To ensure our sustainable and profitable growth, our strategy places a high priority on monitoring, analyzing and responding to the challenges and opportunities these issues present, today and tomorrow.

By consistently following our Group strategy, we are confident that the Allianz Group is in a privileged position to deal with the chal-lenges and opportunities ahead. The most important of these are outlined below.

climatE and dEmoGRapHic cHallEnGES and oppoRtunitiESGlobal warming could alter our climate and such changes could result in a range of risks and opportunities that affect our entire busi-ness. We have a Group-wide strategy covering climate-related risks and opportunities for our business and our customers: we finance and insure low-carbon energy projects, such as wind and solar, offer customers a range of “green” solutions, and provide them with advice on weather-related risk reduction. As a company we continually reduce and offset our own carbon emissions. We also incorporate not only environmental, but also social and governance factors into our investment and underwriting processes as well as in asset manage-ment.

1 For further information on the Cautionary note regarding forward-looking statements, please refer to Executive Summary and Outlook on page 21.




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StRatEGic oppoRtunitiES fRom diGitalizationDigitalization is key element of the Renewal Agenda and enables us to completely transform our business moving forward. Digitalization is not merely a tool through which we can innovate or streamline our internal processes; rather, we can also leverage digital technologies and developments to profoundly reshape the customer experience journey design of our operations. From creating fully modular prod-ucts that can be explored and purchased online to enabling manage-ment of the claims process via an app, we can solidify our customer focus and become their partner of choice. To ensure that these advances will not compromise data security and privacy, we are closely involved in political discussions on the update and modern-ization of European privacy legislation.

Substantial opportunities arise from entering new digital busi-nesses and making use of related new technologies. Our recently-launched partnership with the Chinese company Baidu, as well as rapidly developing relationships with sharing economy players like the mobility solution Drivy, prove that we can build strong alliances in these evolving markets. We are scaling up our expertise in fields such as telematics, robo advice, and the Internet of Things, while also reinforcing our presence in the “FinTech” and “InsurTech” spaces. These developments aim to make Allianz the leading digital insurer.

Internally, we are investing substantially in our digital growth, with related investments into the digital transformation in 2015 of roughly € 650 Mn when excluding basic IT investments and main-tenance. We project that our digital investments will continue at both the local and global level. With these investments we are also placing a strong emphasis on building capabilities to enable productivity gains. By harmonizing our technology and streamlining our opera-tions, we expect to achieve recurring productivity gains of € 1 bn by 2018 throughout the Allianz Group.

Demographic changes are also creating both opportunities and challenges for financial services providers. While the urban popula-tions of Asia and Africa are expanding and their middle classes grow-ing, Western populations are aging and their workforces shrinking. With more people over 60 years old than ever before and declining birth rates, social security systems are under pressure and demand is growing for additional accumulation as well as decumulation products. We are responding to these trends by providing integrated insurance and asset management solutions. Our solid market posi-tion in continental Europe and the United States as well as our strong brand and well-diversified product portfolio put us in an excellent position to develop solutions to meet the needs of the retirement, health care, and assistance markets.

In addition, many of the world's industrialized nations are reliant on infrastructure that is 30 to 50 years old, and yet public-sector investments in this area have been declining across the board. In order to upgrade this aging infrastructure, billions of Euros are required per year – figures that most governments are not able to cover, especially considering the increase in social security spending due to demographic effects. At the same time, the current workforce is faced first and foremost with the need to accumulate adequate funds for retirement, which is proving very difficult in the sustained low interest rate environment. We are at the forefront of bringing these two challenges together to find solutions for the long term: bridging the public-sector infrastructure investment gap and provid-ing profitable retirement provisions. The amendment of the Solvency II Delegated Regulation reducing the required amount of regulatory capital for such investments led to increased incentives for insurers to invest in infrastructure projects. The Allianz Group has multi-year experience within this asset class and benefits from its scale which allows direct access to this asset class as the Allianz Group can also invest in large transactions.

In emerging economies, the need for formal social security systems is growing due to the weakening of traditional family ties and support networks. From life to health and crop insurance, our growing micro-insurance portfolio helps low-income families in developing countries protect themselves against – and better manage – the risks in life to build a more secure future. For example, in Asia, Allianz is working on an insurance model for rice farmers based on satellite technology.

For more information, please refer to Progress in Sustainable Development from page 62.


Corporate Governance ReportGood corporate governance is essential for sustainable business per-formance. The Board of Management and the Supervisory Board of Allianz SE thus attach great importance to complying with the recom-mendations of the German Corporate Governance Code (referred to hereinafter as the “Code”). The Declaration of Conformity with the recommendations of the Code issued by the Board of Management and the Supervisory Board on 10 December 2015 and the company’s position regarding the Code’s suggestions can be found in the State-ment on Corporate Management pursuant to § 289a of the HGB starting on page 45.

Corporate Constitution of the European Company (SE)As a European Company, Allianz SE is subject to special European SE regulations and the German SE Implementation Act (“SE-Ausfüh-rungsgesetz”) in addition to German stock corporation Act. However, the main features of a German stock corporation – in particular the two-tier board system (Board of Management and Supervisory Board) and the principle of equal employee representation on the Super-visory Board – have been maintained by Allianz SE.

Function of the Board of ManagementThe Board of Management of Allianz SE comprises nine members. It is responsible for setting business objectives and the strategic direc-tion, coordinating and supervising the operating entities, as well as implementing and overseeing an efficient risk management system. The Board of Management also prepares the Group’s consolidated financial statements and the annual financial statements of Allianz SE, as well as interim reports.

The members of the Board of Management are jointly responsible for management and for complying with legal requirements. Not-withstanding this overall responsibility, the individual members head the departments they have been assigned independently. There are divisional responsibilities for business segments as well as func-tional responsibilities. The latter include the Finance-, Risk Manage-ment- and Controlling-Function, Investments, Operations – includ-ing IT –, Human Resources, Legal and Compliance, Internal Audit and Mergers & Acquisitions. Business division responsibilities focus on geographical regions or Global Lines, such as Asset Management. Rules of procedure specify in more detail the structure and depart-mental responsibilities of the Board of Management.

Regular Board of Management meetings are led by the Chair-man. Each member of the Board may request a meeting, providing notification of the proposed subject. The Board takes decisions by a simple majority of participating members. In the event of a tie, the Chairman casts the deciding vote. The Chairman can also veto deci-sions, but cannot impose any decisions against the majority vote.

Board of ManagEMEnt and group CoMMittEESIn the financial year 2015, there were the following Board of Manage-ment committees:

Board CoMMittEES

Board CoMMittEES rESponSiBiLitiES

group CapitaL CoMMittEEMichael Diekmann (Chairman) until 6 May 2015,Oliver Bäte (Chairman) from 7 May 2015,Dr. Dieter Wemmer, Dr. Maximilian Zimmerer

Proposals to the Board of Management concerning risk capital management, including Group-wide capital and liquidity planning, as well as investment strategy.

group finanCE and riSk CoMMittEEDr. Dieter Wemmer (Chairman), Sergio Balbinot,Dr. Helga Jung, Jay Ralph, Dr. Axel Theis, Dr. Maximilian Zimmerer

Implementing and overseeing the principles of Group-wide capital and liquidity planning, as well as investment strategy and preparing risk strategy. This includes, in particular, significant individual investments and guidelines for currency management, Group financing and internal Group capital management, as well as establishing and overseeing a Group-wide risk management and monitoring system including dynamic stress tests.

group it CoMMittEEDr. Christof Mascher (Chairman), Jay Ralph,Dr. Axel Theis from 21 May 2015,Dr. Dieter Wemmer,Dr. Werner Zedelius

Developing, proposing, implementing and monitoring a Group-wide it strategy, approval of relevant it investments.

group MErgErS and aCquiSitionS CoMMittEEDr. Helga Jung (Chairwoman), Dr. Dieter Wemmer, Dr. Maximilian Zimmerer

Managing and overseeing Group M & a transactions, including approval of individual transactions within certain thresholds.

as of 31 December 2015

Besides Board committees, there are also Group committees whose job it is to prepare decisions for the Board of Management of Allianz SE, submit proposals for resolutions, and ensure the smooth flow of information within the Group.




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pursuant to § 289a of the HgB


In the financial year 2015, there were the following Group committees:

group CoMMittEES

group CoMMittEES rESponSiBiLitiES

group CoMpEnSation CoMMittEEBoard members of Allianz SE and executives below Allianz SE Board level

Designing, monitoring and improving Group-wide compensation systems in line with regulatory requirements and submitting an annual report on the results of its monitoring, along with proposals for improvement.

group undErwriting CoMMittEEMembers of the Board of Management, executives below Allianz SE Board level and Chief Underwriting Officers of Group companies

Monitoring of the underwriting business, of the related risk management and strategy as well as developing an underwriting policy.

group invEStMEnt CoMMittEEMembers of the Board of Management and executives below Allianz SE Board level

Implementing Group investment strategy, including monitoring Group-wide investment activities as well as approving investment-related frameworks and guidelines and individual investments within certain thresholds.

intErnationaL ExECutivE CoMMittEEChairman of the Allianz SE Board of Management (Chairman), all other members of the Allianz SE Board of Management and Managing Directors of major Group companies

Discussion of overall strategic issues for the Allianz Group.

The Allianz Group runs its operating entities and business segments via an integrated management and control process. The Holding and the operating entities first define the business strategies and goals. On this basis, joint plans are then prepared for the Supervisory Board’s consideration when setting targets for performance-based remuneration of the members of the Board of Management. For details, see the Remuneration Report starting on page 47.

The Board of Management reports regularly and comprehen-sively to the Supervisory Board on business development, the financial position and earnings, planning and achievement of objectives, busi-ness strategy and risk exposure. Details of the Board of Management’s reporting to the Supervisory Board are laid down in the reporting rules issued by the Supervisory Board.

Important decisions of the Board of Management require approval by the Supervisory Board. These requirements are stipu-lated by law, by the Statutes, or in individual cases by decisions of the Annual General Meeting (AGM). Supervisory Board approval is required, for example, for certain capital transactions, intercompany agreements and the launch of new business segments or the closure of existing ones. Approval is also required for acquisitions of compa-nies and holdings in companies, as well as divestments of Group companies which exceed certain threshold levels. The Agreement concerning the Participation of Employees in Allianz SE in the version dated 3 July, 2014 (hereinafter “SE Agreement”) requires the approval of the Supervisory Board for the appointment of the member of the Board of Management responsible for employment and social welfare.

Principles and function of the Supervisory BoardThe German Co-Determination Act (“Mitbestimmungsgesetz”) does not apply to Allianz SE because it has the legal form of a European Company (SE). The size and composition of the Supervisory Board are instead determined by general European SE regulations. These regu-lations are implemented in the Statutes and by the SE Agreement.

The Supervisory Board comprises twelve members, including six shareholder representatives appointed by the AGM. The six employee representatives are appointed by the SE works council. The specific procedure for their appointment is laid down in the SE Agreement. This agreement stipulates that the six employee representatives must be allocated in proportion to the number of Allianz employees in the different countries. The Supervisory Board currently in office comprises four employee representatives from Germany and one each from France and Italy. The last regular election of the Super-visory Board took place in May 2012 for a term lasting until the end of the ordinary AGM in 2017. According to § 17 (2) of the German SE Imple-mentation Act (“SE-Ausführungsgesetz”) the Supervisory Board of Allianz SE shall be composed of at least 30 % women and at least 30 % men as of 1 January 2016.

The Supervisory Board oversees and advises the Board of Man-agement on managing the business. It is also responsible for appoint-ing the members of the Board of Management, determining their overall remuneration and reviewing Allianz SE’s and the Allianz Group’s annual financial statements. The Supervisory Board’s activi-ties in the 2015 financial year are described in the Supervisory Board Report starting on page 5.

The Supervisory Board held six regular meetings in the 2015 financial year and is scheduled to meet three times each half calendar year in the future. Extraordinary meetings may be convened as needed. The committees also hold regular meetings. The Supervisory Board takes all decisions based on a simple majority. The special require-ments for appointing members to the Board of Management con-tained in the German Co-Determination Act and the requirement for a Conciliation Committee do not apply to an SE. In the event of a tie, the casting vote lies with the Chairman of the Supervisory Board, who at Allianz SE must be a shareholder representative. If the Chairman is not present in the event of a tie, the casting vote lies with the deputy chairperson from the shareholder side. A second deputy chairperson is elected on the proposal of the employee representatives.

The Supervisory Board regularly reviews the efficiency of its activities. The Supervisory Board discusses recommendations for improvements and adopts appropriate measures on the basis of rec-ommendations from the Standing Committee.


SupErviSory Board CoMMittEESPart of the Supervisory Board’s work is carried out by its committees. The Supervisory Board receives regular reports on the activities of its committees. The composition of committees and the tasks assigned to them are regulated by the Supervisory Board’s Rules of Procedure.

SupErviSory Board CoMMittEES

SupErviSory Board CoMMittEES rESponSiBiLitiES

Standing CoMMittEE 5 members− Chairman: Chairman

of the Supervisory Board (Dr. Helmut Perlet)

− Two further shareholder representatives (Prof. Dr. Renate Köcher, Dr. Wulf H. Bernotat)

− Two employee represen tatives (Gabriele Burkhardt-Berg, Rolf Zimmermann)

− Approval of certain transactions which require the approval of the Supervisory Board, e.g. capital measures, acquisitions and disposals of participations

− Preparation of the Declaration of Conformity pursuant to § 161 “Aktiengesetz” (German Stock Corporation Act) and checks on corporate governance

− Preparation of the efficiency review of the Supervisory Board

audit CoMMittEE 5 members− Chairman: appointed

by the Supervisory Board (Dr. Wulf H. Bernotat)

− Three shareholder representatives (in addition to Dr. Wulf H. Bernotat: Dr. Helmut Perlet, Jim Hagemann Snabe)

− Two employee represen tatives (Ira Gloe-Semler, Jean-Jacques Cette)

− Initial review of the annual Allianz SE and consolidated financial statements, management reports (incl. Risk Report) and the dividend proposal, review of half-yearly reports or, where applicable, quarterly financial reports or statements

− Monitoring of the financial reporting process, the effectiveness of the internal control and audit system and legal and compliance issues

− Monitoring of the audit procedures, including the independence of the auditor and the services addi - tionally rendered, awarding of the audit contract and determining the focal points of the audit

riSk CoMMittEE 5 members− Chairman: appointed by

the Supervisory Board (Dr. Helmut Perlet)

− Three shareholder representatives (in addition to Dr. Helmut Perlet: Christine Bosse, Peter Denis Sutherland)

− Two employee represen tatives (Dante Barban, Franz Heiß until 31 July 2015, Jürgen Lawrenz from 6 August 2015)

− Monitoring of the general risk situation and special risk developments in the Allianz Group

− Monitoring of the effectiveness of the risk management system

− Initial review of the Risk Report and other risk-related statements in the annual financial statements and management reports of Allianz SE and the Allianz Group, informing the Audit Committee of the results of such reviews

pErSonnEL CoMMittEE 3 members− Chairman: Chairman


− One further shareholder representative (Christine Bosse)

− One employee represen tative (Rolf Zimmermann)

− Preparation of the appointment of Board of Management members

− Preparation of plenary session resolutions on the compensation system and the overall compensation of Board of Management members

− Conclusion, amendment and termination of service contracts of Board of Management members unless reserved for the plenary session

− Long-term succession planning for the Board of Management

− Approval of the assumption of other mandates by Board of Management members

noMination CoMMittEE 3 members− Chairman: Chairman


− Two further shareholder representatives (Prof. Dr. Renate Köcher, Peter Denis Sutherland)

− Setting of concrete objectives for the composition of the Supervisory Board

− Establishment of selection criteria for shareholder representatives on the Supervisory Board in compliance with the Code’s recommendations on the composition of the Supervisory Board

− Selection of suitable candidates for election to the Supervisory Board as shareholder representatives

puBLiCation of dEtaiLS of MEMBErS’ partiCipation in MEEtingSThe Supervisory Board considers it good corporate governance to publish the details of individual members’ participation in plenary sessions and committee meetings.

puBLiCation of dEtaiLS of MEMBErS’ partiCipation in MEEtingS

prESEnCE in pErCEnt

pLEnary SESSionS of tHE SupErviSory BoardDr. Helmut Perlet (Chairman) 6/6 100Dr. Wulf H. Bernotat (Vice Chairman) 5/6 83.33Rolf Zimmermann (Vice Chairman) 6/6 100Dante Barban 6/6 100Christine Bosse 6/6 100Gabriele Burkhardt-Berg 6/6 100Jean-Jacques Cette 6/6 100Ira Gloe-Semler 6/6 100Franz Heiß 3/31 100Prof. Dr. Renate Köcher 6/6 100Jürgen Lawrenz 3/3 2 100Jim Hagemann Snabe 6/6 100Peter Denis Sutherland 5/6 83.33

Standing CoMMittEEDr. Helmut Perlet (Chairman) 3/3 100Dr. Wulf H. Bernotat 1/3 33.33Gabriele Burkhardt-Berg 3/3 100Prof. Dr. Renate Köcher 2/3 66.67Rolf Zimmermann 3/3 100

pErSonnEL CoMMittEEDr. Helmut Perlet (Chairman) 6/6 100Christine Bosse 5/6 83.33Rolf Zimmermann 6/6 100

audit CoMMittEEDr. Wulf H. Bernotat (Chairman) 4/5 80Jean-Jacques Cette 5/5 100Ira Gloe-Semler 5/5 100Jim Hagemann Snabe 5/5 100Dr. Helmut Perlet 5/5 100

riSk CoMMittEEDr. Helmut Perlet (Chairman) 2/2 100Dante Barban 2/2 100Christine Bosse 2/2 100Franz Heiß 1/11 100Jürgen Lawrenz 1/12 100Peter Denis Sutherland 1/2 50

noMination CoMMittEE Dr. Helmut Perlet (Chairman) 1/1 100Prof. Dr. Renate Köcher 1/1 100Peter Denis Sutherland 1/1 100

1 Mr. Heiß left the Supervisory Board on 31 July 2015.2 Mr. Lawrenz joined the Supervisory Board on 1 August 2015.




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pursuant to § 289a of the HgB


1 For further details, please see BaFin Guidance Notice on Vetting Members of Administrative and Super-visory Bodies in accordance with the German Banking Act and the German Insurance Supervision Act in its respective effective version.

oBjECtivES of tHE SupErviSory Board rEgarding itS CoMpoSitionIn order to implement a recommendation by the Code, the Super-visory Board specified the following objectives for its composition at its meeting on 10 December 2015:

oBjECtivES of aLLianz SE’S SupErviSory Board rEgarding itS CoMpoSition

“The aim of Allianz SE’s Supervisory Board is to have members who are equipped with the necessary skills and competence to properly supervise and advise Allianz SE’s management. Supervisory Board candidates should possess the professional expertise and experience, integrity, motivation and commitment, independence and personality required to successfully carry out the responsibilities of a Supervisory Board member in a financial-services institution with international operations. To promote additional cooperation among Supervisory Board members, care should be taken in selecting the candidates to ensure that adequate attention is paid to ensuring diversity in occupational backgrounds, professional expertise and experience.

Employee representation within Allianz SE, as provided for by the SE Agreement concerning the Participation of Employees dated 3 July 2014, contributes to diversity of work experience and cultural background. Pursuant to § 6 (2) sentence 2 of the Act on the Participation of Employees in a European Company (SEBg), the number of women and men appointed as German employee representatives should be proportional to the number of women and men working in the German companies. However, the Supervisory Board does not have the right to select the employee representatives.

The following requirements and objectives apply to the composition of Allianz SE’s Supervisory Board:1

I. Requirements relating to the individual members of the Supervisory Board

– depending on possible memberships in one or more of the currently five Super-visory Board committees, extra time planning to participate in the committee meetings and to prepare for such meetings is required; this applies in particular to the Audit and Risk Committees;

– extraordinary meetings of the Supervisory Board or of a committee may be necessary to deal with special matters.

4. Retirement ageAccording to the Supervisory Board’s Rules of Procedure, its members may not, in general, be older than 70 years of age.

5. Term of membershipThe continuous period of membership for any member of the Supervisory Board should, as a rule, not exceed 15 years.

1. General selection criteria– Managerial or operational experience – General knowledge of the insurance and financial services business – Willingness and ability to make sufficient commitments on substance– Fulfillment of the regulatory requirements, in particular1:

– Reliability – Knowledge of the field of corporate governance and supervisory law– Knowledge of the main features of accounting and risk management

– Compliance with the limitation on the number of mandates as recommended by the German Corporate Governance Code and required by § 24 (4) of the German Insurance Supervision Act 2016 (“Versicherungsaufsichtsgesetz – vag 2016”).

2. Independence At least eight members of the Supervisory Board should be independent as defined by No. 5.4.2 of the Corporate Governance Code, i.e. they may not have any business or personal relations with Allianz SE or its Executive Bodies, a controlling shareholder or an enterprise associated with the latter, which may cause a substantial and not merely temporary conflict of interests. In case shareholder representatives and employee representatives are viewed separately, at least four members should be independent within the meaning of No. 5.4.2 of the Corporate Governance Code. Regarding employee representatives, however, the mere fact of employee repre-sentation and the existence of a working relationship with the company shall not itself affect independence.

In addition, at least one member must be independent within the meaning of § 100 (5) of the German Stock Corporation Act (AktG).

It must be taken into account that the possible emergence of conflicts of interest in individual cases cannot, as a general rule, be excluded. Potential conflicts of interest must be disclosed to the chairman of the Supervisory Board and will be resolved by appropriate measures.

3. Time of availabilityEach member of the Supervisory Board must ensure that it has sufficient time to dedicate to the proper fulfilment of the Supervisory Board mandate. It has to be taken into account that– there are six ordinary Supervisory Board meetings per year, each of which requires

adequate preparation;– sufficient time has to be dedicated for the audit of the annual and consolidated

financial statements;– attendance of the General Meeting is required;

II. Requirements relating to the composition of the Board as a whole

1. Specialist knowledge– At least one member must have considerable experience in the insurance and

financial-services fields– At least one member must have expert knowledge of accounting and auditing

as defined by § 100 (5) of the German Stock Corporation Act (AktG).– Specialist knowledge of, or experience in, other economic sectors.

2. International characterAt least four of the members must, on the basis of their origin or function, represent regions or cultural areas in which Allianz SE conducts significant business.

Since the establishment of Allianz SE as a Societas Europaea (European Company), Allianz employees from different Member States of the Eu are considered in the distribution of Supervisory Board seats for employee representatives, according to the Agreement concerning the Participation of Employees in Allianz SE dated 3 July 2014.

3. Diversity and appropriate representation of womenThe members of the Supervisory Board shall complement one another regarding their background, professional experience and specialist knowledge, in order to provide the Supervisory Board with the most diverse sources of experience and specialist knowledge possible.

The Supervisory Board shall be composed of at least 30 % women and at least 30 % men. The representation of women is generally considered to be the joint responsibility of the shareholder and employee representatives. “


The composition of the Supervisory Board of Allianz SE reflects these objectives. It has an appropriate number of independent members with international backgrounds. With four female Supervisory Board members, the current legislation for equal participation of women and men in leadership positions (statutory gender quota of 30 %) is being met. The current composition of the Supervisory Board and its committees is described on page 9.

Shares held by members of the Board of Management and the Supervisory BoardThe total holdings of members of the Board of Management and the Supervisory Board of Allianz SE amounted to less than 1 % of the com-pany’s issued shares as of 31 December 2015.

Directors’ dealingsMembers of the Board of Management and the Supervisory Board are obliged by the German Securities Trading Act (“Wertpapierhandels-gesetz”) to disclose any transactions involving shares of Allianz SE or financial instruments based on them to both Allianz SE and the Ger-man Federal Financial Supervisory Authority should the value of the shares acquired or divested by the member or a person closely asso-ciated to the member amount to five thousand Euros or more within a calendar year. Such disclosures are published on our website at

www.allianz.com/management-board and www.allianz.com/supervisory-board.

Annual General MeetingShareholders exercise their rights at the Annual General Meeting. When adopting resolutions, each share carries one vote. Shareholders can follow the AGM’s proceedings on the internet and be represented by proxies. These proxies exercise voting rights exclusively on the basis of instructions given by the shareholder. Shareholders are also able to cast their votes via the internet in the form of online voting. Allianz SE regularly promotes the use of internet services.

The AGM elects the shareholder representatives of the Super-visory Board and approves the actions taken by the Board of Manage-ment and the Supervisory Board. It decides on the use of profits, capital transactions and the approval of intercompany agreements, as well as the remuneration of the Supervisory Board and changes to the company’s Statutes. In accordance with European regulations and the Statutes, changes to the Statutes require a two-thirds major-ity of votes cast in case less than half of the share capital is repre-sented in the AGM. Each year, an ordinary AGM takes place at which the Board of Management and Supervisory Board give an account of the preceding financial year. For special decisions, the German Stock Corporation Act provides for the convening of an extraordinary AGM.

Accounting and auditingThe Allianz Group prepares its accounts according to § 315a of the German Commercial Code (“Handelsgesetzbuch – HGB”) on the basis of IFRS international accounting standards as adopted within the European Union. The annual financial statements of Allianz SE are prepared in accordance with German law, in particular the HGB.

In compliance with special legal provisions that apply to insur-ance companies, the auditor of the annual financial statements and of the half-yearly financial report is appointed by the Supervisory Board, and not by the AGM. The audit of the financial statements covers the individual financial statements of Allianz SE and also the consoli-dated financial statements of the Allianz Group.

To ensure maximum transparency, we inform our shareholders, financial analysts, the media and the general public of the company’s situation on a regular basis and in a timely manner. The annual financial statements of Allianz SE, the Allianz Group’s consolidated financial statements and the respective management reports are published within 90 days of the end of each financial year. Additional information is provided in the Allianz Group’s quarterly and half-yearly financial reports. As of the fiscal year 2016, the quarterly finan-cial reports will be replaced by quarterly statements; the half-yearly financial reports will still be reviewed by the auditor. Information is also made available at the AGM, at press and analysts’ conferences, as well as on the Allianz Group’s website. Our website also provides a financial calendar listing the dates of major publications and events, such as annual reports, quarterly statements and half-yearly financial reports, AGMS as well as analyst conference calls and Finan-cial press conferences.

You can find the 2016 financial calendar on our website at www.allianz.com/financialcalendar.

OutlookThe regulatory environment still remains in a state of flux. The pro-posed recast of the Directive on shareholder rights, which could prompt some changes to the corporate governance structure, is at an advanced stage. The reform of the legislation regarding external auditors will primarily impact the work of the Supervisory Board. The Allianz Group’s classification as a Global Systemically Important Insurer will also have a tangible effect on corporate governance.

www.allianz.com/management-board

www.allianz.com/supervisory-board

www.allianz.com/supervisory-board

www.allianz.com/financialcalendar




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Statement on Corporate Manage ment pursuant to § 289a of the HGB

The Statement on Corporate Management pursuant to § 289a of the German Commercial Code (“Handelsgesetzbuch – HGB”) forms part of the Group Management Report. According to § 317 (2), sentence 4 of the HGB, this Statement does not have to be included within the scope of the audit.

Declaration of Conformity with the German Corporate Governance CodeOn 10 December 2015, the Board of Management and the Supervisory Board issued the following Declaration of Conformity of Allianz SE with the German Corporate Governance Code (hereinafter the “Code”):

DEclaration of conformity in accorDancE witH § 161 of tHE GErman Stock corporation act (aktG)

“Declaration of Conformity by the Management Board and the Supervisory Board of Allianz SE with the recommendations of the German Corporate Governance Code Commission in accordance with § 161 of the German Stock Corporation Act (AktG)

1. All recommendations of the German Corporate Governance Code (GcGc) in the version of May 5, 2015 are currently complied with and will be complied with in the future.

2. Since the last Declaration of Conformity as of December 11, 2014, all recommen

dations of the GcGc in the version of June 24, 2014 were complied with except for the following deviation: According to Item 5.3.2 GcGc, the Audit Committee of the Supervisory Board shall be responsible for the monitoring of the risk management system. The Supervisory Board of Allianz SE has additionally established a specific Risk Committee, which is responsible for the monitoring of the risk management system. However, such deviation ceases to exist due to the amendment of Item 5.3.2 GcGc in the version of May 5, 2015.

Munich, December 10, 2015Allianz SE

For the Board of Management:Signed Oliver Bäte Signed Dr. Helga Jung

For the Supervisory Board:Signed Dr. Helmut Perlet”

In addition, Allianz SE follows all the suggestions of the Code in its 5 May 2015 version and also followed all suggestions in the previous version of 24 June 2014.

The Declaration of Conformity and further information on corporate governance at Allianz can be found on our website at

www.allianz.com/corporate-governance.The listed Group company Oldenburgische Landesbank AG

issued its own Declaration of Conformity in December 2015, which states that Oldenburgische Landesbank AG complies with all of the recommendations of the Code in the version of 5 May 2015 (as well as in the previous year’s version of 24 June 2014).

Corporate governance practicesintErnal control SyStEmSThe Allianz Group has an effective internal control system for verify-ing and monitoring its operating activities and business processes, in particular the control of financial reporting. The requirements placed on the internal control systems are essential not only for the survival of the company, but also to maintain the confidence of the capital market, our customers and the public. A comprehensive risk management system regularly assesses the appropriateness of the internal control system, taking into account not only qualitative and quantitative guidelines, but also specific controls for individual busi-ness activities. For further information on the risk organization and risk principles, please refer to the Internal controls over financial reporting from page 67.

In addition, the quality of the internal control system is assessed by the Allianz Group’s internal audit staff. Internal Audit conducts independent audit procedures, analyzing the structure and efficacy of the internal control systems as a whole. In addition, it also exam-ines the potential for additional value and improvement of our orga-nization’s operations. Fully compliant with all international auditing principles and standards, Internal Audit contributes to the evalua-tion and improvement of the effectiveness of the risk management, control and governance processes. Therefore, internal audit activities are geared towards helping the company to mitigate risks and further assist in strengthening its governance processes and structures.



compliancE proGramThe sustained success of the Allianz Group is based on the respon-sible behavior of all Group employees, who embody trust, respect and integrity. By means of the global compliance program coordinated by its central compliance function, Allianz supports and follows inter-nationally and nationally recognized guidelines and standards for rules-compliant and value-based corporate governance. These include the principles of the United Nations (UN Global Compact), the Guidelines of the Organization for Economic Co-operation and Development (OECD guidelines) for Multinational Enterprises, and European and international standards on data and consumer protec-tion, economic and financial sanctions and combating corruption, bribery, money laundering and terrorism financing. Through its sup-port for and acceptance of these standards, Allianz aims to avoid the risks that might arise from non-compliance. The central compliance function is responsible – in close cooperation with local compliance departments – for ensuring the effective implementation and moni-toring of the compliance program within the Allianz Group, as well as for investigating potential compliance infringements.

The standards of conduct established by the Allianz Group’s Code of Conduct for Business Ethics and Compliance are obligatory for all employees worldwide. The Code of Conduct is available on our website at www.allianz.com/corporate-governance.

The Code of Conduct and the internal guidelines derived from it provide all employees with clear guidance on behavior that lives up to the values of the Allianz Group. In order to transmit the principles of the Code of Conduct and the internal compliance program based on these principles, Allianz has implemented interactive training programs around the world. These provide practical guidelines which enable employees to come to their own decisions. The Code of Conduct also forms the basis for guidelines and controls to ensure fair dealings with Allianz Group customers (sales compliance).

There are legal provisions against corruption and bribery in almost all countries in which Allianz has a presence. The global Anti-Corruption Program of the Allianz Group ensures the continuous monitoring and improvement of the internal anti-corruption con-trols. More information on the Anti-Corruption Program can be found in the Sustainability Report on our website at www.allianz.com/sustainability.

A major component of the Allianz Group’s compliance program is a whistleblower system that allows employees to alert the relevant compliance department confidentially about irregularities. No employee voicing concerns about irregularities in good faith needs to fear retribution, even if the concerns turn out to be unfounded at a later date.

DEScription of tHE functionS of tHE BoarD of manaGEmEnt anD tHE SupErviSory BoarD anD of tHE compoSition anD functionS of tHEir committEESA description of the composition of the Supervisory Board and its committees can be found on page 9 and 11 of the Annual Report. A description of the composition of the Board of Management can be found on page 12 to 14, while the composition of the Committees of the Board of Management is described in the Corporate Governance Report starting on page 40. This information is also available on our website at www.allianz.com/corporate-governance.

A general description of the functions of the Board of Manage-ment, the Supervisory Board and their committees can be found in the Corporate Governance Report starting on page 40, and on our website at www.allianz.com/corporate-governance.

German Act on Equal Participation of Women and Men in Executive Positions in the Private and the Public SectorTo implement the German Act on Equal Participation of Women and Men in Executive Positions in the Private and the Public Sector, Allianz SE has set the following objectives for the proportion of women on the Board of Management and the two management levels below the Board of Management, which are to be achieved by 30 June 2017.

The objective for the proportion of women on Allianz SE’s Board of Management is 11 %. This figure is based on the status quo, as it is not easily possible to intervene in ongoing Board appointments and the first legal implementation period runs only until mid-2017. How-ever, the Supervisory Board of Allianz SE has already declared its intention to increase the proportion of women on the Board of Man-agement to at least 20 % by the end of 2018.

As regards the proportion of women on the first and the second management level below the Board of Management of Allianz SE, the Board of Management has set a target quota of at least 20 %. Over the longer term, Allianz is aiming for at least 30 % of positions on these two management levels to be held by women.

§ 17 (2) of the SE Implementation Act (“SE-Ausführungsgesetz”) states that the Supervisory Board of Allianz SE must be composed of at least 30 % of both women and men as of 1 January 2016. This require-ment was already met in the 2015 financial year, as the Supervisory Board consisted of four female and eight male members throughout the year.




www.allianz.com/sustainability




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Remuneration ReportThis report covers the remuneration arrangements for the Board of Management and the Supervisory Board of Allianz SE.

Allianz SE Board of Management remuneration

GOVERNANCE SYSTEMThe remuneration of the Board of Management is decided upon by the entire Supervisory Board based on proposals prepared by the Personnel Committee. If required, outside advice is sought from inde-pendent external consultants. The Personnel Committee and the Supervisory Board consult with the Chairman of the Board of Ma-nagement, as appropriate, in assessing the performance and remu-neration of members of the Board of Management. The Chairman of the Board of Management is not present when his own remuneration is discussed. Regarding the activities and decisions taken by the Per-sonnel Committee and the Supervisory Board, please refer to the Supervisory Board Report.

REMUNERATION PRINCIPLES AND MARKET POSITIONINGThe key principles of Board of Management remuneration are as follows:

− Support of the Group’s strategy: Performance targets reflect the Allianz Group’s business strategy.

− Alignment of pay and performance: The performance-based, variable component forms a significant portion of the overall remuneration.

− Variable remuneration focused on sustainability: Two thirds of the variable remuneration reflect longer-term performance. One third is a deferred payout after three years, based on a sustain-ability assessment covering the three-year period. The other third rewards the sustained performance of the share price with a deferred payout four years after grant.

− Alignment with shareholder interests: One third of the variable remuneration is dependent upon share price performance.

The structure, weighting and level of remuneration is decided by the Supervisory Board. Remuneration survey data of DAX 30 companies and international insurance peers is provided by external consul-tants. Compensation levels are around the third quartile of this group. The structure of the Allianz Group’s total remuneration is more strongly weighted to variable, longer-term components than in most DAX 30 companies. Remuneration and benefit arrangements are also periodically compared with best practices. In addition, the Supervisory Board takes remuneration levels within the Group into account when reviewing the adequateness and the appropriateness of the remuneration of the Board of Management.

REMUNERATION STRUCTURE, COMPONENTS AND TARGET SETTING PROCESSThere are four main remuneration components. Each has the same weighting within annual target remuneration: base salary, annual bonus, annualized mid-term bonus (MTB) and equity-related remu-neration. The target compensation of each variable component does not exceed the base salary, with the total target variable compensation not exceeding three times the base salary. In addition, Allianz offers pensions and similar benefits and perquisites.

Base salaryBase salary is the fixed remuneration component, expressed as an annual cash sum and paid in twelve monthly installments.

Variable remunerationVariable remuneration is designed to balance short-term perfor-mance, longer-term success and sustained value creation.

Each year, the Supervisory Board agrees on performance targets for the variable remuneration component with members of the Board of Management. These are documented for the upcoming financial year. Every three years, the MTB sustainability criteria are set for the following mid-term period.

All variable awards are made under the rules and conditions of the “Allianz Sustained Performance Plan” (ASPP). The grant of variable remuneration components is related to performance and can vary between 0 % and 150 % of the respective target values. If performance was rated at 0 % no variable component would be granted. Conse-quently, the minimum total direct compensation for a regular mem-ber of the Board of Management equals the base salary of € 750 THOU (excluding perquisites and pension contributions). The maximum total direct compensation (excluding perquisites and pension con-tributions) is € 4,125 THOU: base salary € 750 THOU plus € 3,375 THOU (150 % of the sum of all three variable compensation components at target).


Details on the variable compensation components:

− Annual bonus (short-term): A cash payment which rewards the achievement of quantitative and qualitative targets for the respective financial year and is paid the year following the perfor-mance year. Quantitative targets represent 75 % and consist of 50 % Group targets (equally divided between annual operating profit and annual net income) and 25 % divisional targets. For members of the Board of Management with business division responsibili-ties, divisional targets are set with the following split: 10 % annual operating profit, 10 % annual net income before minorities and 5 % dividends. For members of the Board of Management with a func-tional focus, the divisional quantitative targets are determined based on their key responsibilities. Qualitative targets represent 25 % and reflect the specific individual priorities for the perfor-mance year per member of the Board of Management. The perfor-mance of the Chairman of the Allianz SE Board of Management is determined by the average target achievement of the other Board of Management members and can be adjusted by the Super visory Board based on the Chairman’s personal performance.

Based on the 2015 target achievement for the Group, the business division/corporate functions and the qualitative per-formance, the total annual bonus awards ranged between 101 % and 133 % of the target with an average bonus award of 121 % of the target.

ILLUSTRATION Of THE PROCESS AND THE UNDERLYING TIMELINE Of THE MTB CYCLE, fROM TARGET SETTING TO fINAL PERfORMANCE ASSESSMENT1

€ THOU

20132 20142 20152 20163 Dec 2012

Accrual930

Sustainability criteria setting for the three-year performance period

Initial accruedamounts

±Sustainability

assessment=

Final payout

Total 2,200

Accrual620

Accrual650

Accrual930

Accrual620

Accrual650

Notional accruals

0 %

150 %

Min: 0

Max: 3,300

Target:2,200

Sustainability criteria setting Performance period Sustainability assessment & payout

Year 1 Year 2 Year 3

1 Example based on target values of a regular member of the Board of Management with an annual target of € 700 THOU for 2013 and € 750 THOU for the MTB in 2014 and 2015. Accrual is only a notional indication.

2 Actual accrual for the MTB (mid-term) usually equals the annual bonus payout of the respective financial year. Since the performance assessment and the final payout occur after completion of the performance cycle, this value is only a notional indication.

3 Final payout is subject to the sustainability assessment of the Supervisory Board and may vary between 0 % and 150 % of the cumulative target values, independent of the notional accruals.

− MTB (mid-term): A deferred award which reflects the achieve-ment of the annual targets by accruing an amount identical to the annual bonus. The payout of the award at the end of a three-year cycle is subject to a sustainability assessment for these three years. The following criteria are considered:

− adjusted capital growth vs. planned development in light of risk capital employed (adjusted capital essentially repre-sents the fair value of shareholders’ equity),

− balance sheet strength, − comparison with peers, − “partner of choice” for stakeholders, and − extraordinary events.

Following the final performance and sustainability assessment of the MTB 2013 – 2015, a total payout of € 29,176 THOU was approved by the Supervisory Board. The Supervisory Board conducted the sustainability assessment in accordance with the agreed criteria. This analysis concluded that the years 2013 – 2015 represented a period of solid and sustainable performance for Allianz with over-all positive development against the criteria – in particular with regard to balance sheet strength. The final distributions have been differentiated according to the assessments made across the business divisions with adjustments ranging from 0 % to + 10 % of the target value.




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− Equity-related remuneration (long-term): A virtual share award, known as “Restricted Stock Units” (RSUs). The grant value of the RSUs allocated equals the annual bonus of the performance year. The number of RSUs allocated is derived from dividing the grant value by the fair market value of an RSU at the time of grant.

The fair market value is calculated based on the ten-day average Xetra closing price of the Allianz stock following the financial press conference on the annual results. As RSUs are virtual stocks without dividend payments, the average Xetra closing price is reduced1 by the net present value of the expected future dividend payments during the vesting period. The expected dividend stream is discounted with the respective swap rates as of the valuation day.

Following the end of the four-year vesting period, the com-pany makes a cash payment based on the number of RSUs granted and the ten-day average Xetra closing price of the Allianz stock following the annual financial press conference in the year of expiry of the respective RSU plan. The RSU payout is capped at 200 % above grant price to avoid extreme payouts2. Outstanding RSU holdings are forfeited should a Board member leave at his/her own request or be terminated for cause.

Variable remuneration components may not be paid, or payment may be restricted in the case of a breach of the Allianz Code of Con-duct, risk limits, or compliance requirements. Additionally, a reduc-tion or cancellation of variable remuneration may occur if the super-visory authority (BaFin) requires this in accordance with its statutory powers.

Pensions and similar benefitsTo provide competitive and cost-effective retirement and disability benefits, Board of Management members have participated in a con-tribution-based system since 1 January 2005 which was modified to My Allianz Pension in 2015 for all Board members born after 31 Decem-ber 1957. Before 2005, Board members participated in a defined benefit plan that provided fixed benefits not linked to base salary increases. Benefits generated under this plan were frozen at the end of 2004. Additionally, most Board members participate in the Allianz Versor-gungskasse VVaG (AVK), a contribution-based pension plan, and the Allianz Pensionsverein e.V. (APV) – which provide pension benefits for salaries up to the German social security ceiling.

1 The fair market value of the RSUs is further subject to a small reduction of a few Euro cents due to the 200 % cap on the RSU payout. This reduction is calculated based on a standard option price formula.

2 The relevant share price used to determine the final number of RSUs granted and the 200 % cap is only available after sign-off by the external auditors.

Company contributions to the current pension plan depend on the years of service on the Board of Management. For most members of the Allianz SE Board of Management, the contributions are invested in a fund with a guarantee for the contributions paid, but no further interest guarantee. On retirement, the accumulated capital is paid out as lump sum or can be converted into a lifetime annuity. Each year the Supervisory Board decides whether and to what extent a bud-get is provided, also taking into account the targeted pension level. This budget includes a risk premium paid to cover death and dis-ability. The earliest age a pension can be drawn is 62, except for cases of occupational or general disability for medical reasons. In these cases, it may become payable earlier and an increase by projection may apply. In the case of death, a pension may be paid to dependents. Surviving dependents normally receive 60 % (surviving partner) and 20 % (per child) of the original Board member’s pension, with the aggregate not to exceed 100 %. Should Board membership cease before retirement age for other reasons, the accrued pension rights are maintained if vesting requirements are met.

For members of the Allianz SE Board of Management who were born before 1 January 1958 and for rights accrued before 2015 the guaranteed minimum interest rate remains at 2.75 % and the retire-ment age is still 60.

PerquisitesPerquisites mainly consist of contributions to accident and liability insurances and the provision of a company car. Perquisites are not linked to performance. Each member of the Board of Management is responsible for the income tax on these perquisites. The Supervisory Board regularly reviews the level of perquisites.


REMUNERATION fOR 2015The following remuneration disclosure is based on and compliant with the German Corporate Governance Code and illustrates indi-vidual remuneration for 2014 and 2015, including fixed and variable remuneration and pension service cost. The “grant” column below shows the remuneration at target and minimum and maximum levels. The “payout” column discloses the 2014 and 2015 payments. The base salary, annual bonus and perquisites are linked to the reported performance years 2014 and 2015, whereas the Group Equity Incentive (GEI) and Allianz Equity Incentive (AEI) payouts result from grants related to the performance years 2008 – 2010.

To make the remuneration related to the performance year 2015 more transparent, the additional column “actual grant” includes the 2015 fixed compensation, the bonus paid for 2015, the MTB 2013 – 2015 tranche accrued for the performance year 2015 and the fair value of the RSU grant in 2016 for the performance year 2015.

The 2015 payout is significantly higher than in 2014 due to the fact that the payout of the MTB 2013 – 2015 is disclosed. This compris-es payment for three performance years in total.

INDIVIDUAL REMUNERATION: 2015 AND 2014

€ THOU Oliver Bäte6 (Appointed: 01/2008; CEO since 05/2015) Michael Diekmann7 (Appointed: 10/1998; CEO 04/2003 – 05/2015) Sergio Balbinot8 (Appointed: 01/2015)

GrantActual Grant

Payout1 Grant

Actual Grant Payout1 Grant

Actual Grant

Payout1

2014 2015 2015 2014 2015 2014 2015 2015 2014 2015 2014 2015 2015 2014 2015

Target Target Min Max Target Target Min Max Target Target Min Max

Base Salary 750 994 994 994 994 750 994 1,280 447 447 447 447 1,280 447 – 750 750 750 750 – 750Perquisites 7 15 15 15 15 7 15 24 12 12 12 12 24 12 – 33 33 33 33 – 33Total fixed compensation 757 1,009 1,009 1,009 1,009 757 1,009 1,304 459 459 459 459 1,304 459 – 783 783 783 783 – 783

Annual Variable Compensation – Annual Bonus 750 996 – 1,494 1,260 1,009 1,260 1,280 442 – 663 534 1,546 534 – 750 – 1,125 999 – 999

Deferred CompensationMTB (2013 – 2015)2 750 996 – 1,494 1,260 – 3,516 1,280 442 – 663 534 – 3,952 – 750 – 1,125 999 – 999AEI 2016/RSU3 – 996 – 1,494 1,260 – – – 442 – 663 534 – – – 750 – 1,125 999 – –AEI 2015/RSU3 750 – – – – – – 1,280 – – – – – – – – – – – – –AEI 2011/RSU3 – – – – – – 1,704 – – – – – – 2,776 – – – – – – –GEI 2010/RSU3 – – – – – – 916 – – – – – – 1,569 – – – – – – –GEI 2009/RSU3 – – – – – 228 – – – – – – 376 – – – – – – – –GEI 2010/SAR4 – – – – – 438 – – – – – – 963 – – – – – – – –GEI 2008/SAR4 – – – – – – 263 – – – – – – 450 – – – – – – –

Total 3,007 3,997 1,009 5,491 4,790 2,432 8,668 5,144 1,785 459 2,448 2,061 4,189 9,740 – 3,033 783 4,158 3,780 – 2,781Pensions Service Cost5 368 483 483 483 483 368 483 998 235 235 235 235 998 235 – 222 222 222 222 – 222Total 3,375 4,480 1,492 5,974 5,273 2,800 9,151 6,142 2,020 694 2,683 2,296 5,187 9,975 – 3,255 1,005 4,380 4,002 – 3,003

1 In accordance with the German Corporate Governance Code, the annual bonus disclosed for performance year 2015 is paid in 2016 and for performance year 2014 in 2015. The payments for equity related deferred compensation (GEI and AEI), however, are disclosed for the year in which the actual payment was made.

2 The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure includes the 2015 allocation and the accruals from the performance years 2013 and 2014 as adjusted by the sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.

3 Payout is capped at 200 % above grant price. The relevant share price used to determine the fair market value, and hence the final number of RSUs granted, and the 200 % cap are only available after sign-off by the external auditors.

4 The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following the vesting date. Hence the total payout from SARs depends on the individual decision by the Board

member. SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years and the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least 20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of the appreciation of the Dow Jones EURO STOXX Price Index (600).

5 Pension Service Cost in accordance with IAS 19: represents the company cost not the actual entitlement nor a payment, however, according to the German Corporate Governance Code the Pension Service Cost is to be included in all columns.

6 Oliver Bäte’s base salary and his target for the annual bonus, the MTB tranche and equity-related com-pensation are disclosed based on his pro-rated base salary of € 750 THOU until 6 May 2015 and his pro-rated base salary of € 1,125 THOU from 7 May 2015. The different pro-rated amounts for base salary and target amounts result from different pro-rating methodologies, which are generally applied.

7 Michael Diekmann retired on 7 May 2015. He received a pro-rated base salary, annual bonus and equity-related compensation. The different pro-rated amounts for base salary and target amounts result from different pro-rating methodologies, which are generally applied. According to his service contract, he will receive his fixed salary of € 106.7 THOU per month for a period of 6 months from December 2015 as a transition payment, which will be set off against the regular pension payment. As part of the transition payment he will receive a payment of 25 % of the annual variable target compensation (€ 960 THOU) in spring 2017.

8 In addition to the amounts disclosed in the table, Sergio Balbinot received a buyout award of € 6 Mn to compensate for forfeited grants from his previous employer: € 3 Mn in cash and € 3 Mn in RSUs. 50 % of the cash amount was paid in February 2015 and 50 % will be paid in 2016 and are subject to clawback.




of Business






€ THOU Oliver Bäte6 (Appointed: 01/2008; CEO since 05/2015) Michael Diekmann7 (Appointed: 10/1998; CEO 04/2003 – 05/2015) Sergio Balbinot8 (Appointed: 01/2015)

GrantActual Grant

Payout1 Grant


Actual Grant

Payout1

2014 2015 2015 2014 2015 2014 2015 2015 2014 2015 2014 2015 2015 2014 2015


Base Salary 750 994 994 994 994 750 994 1,280 447 447 447 447 1,280 447 – 750 750 750 750 – 750Perquisites 7 15 15 15 15 7 15 24 12 12 12 12 24 12 – 33 33 33 33 – 33Total fixed compensation 757 1,009 1,009 1,009 1,009 757 1,009 1,304 459 459 459 459 1,304 459 – 783 783 783 783 – 783

Annual Variable Compensation – Annual Bonus 750 996 – 1,494 1,260 1,009 1,260 1,280 442 – 663 534 1,546 534 – 750 – 1,125 999 – 999

Deferred CompensationMTB (2013 – 2015)2 750 996 – 1,494 1,260 – 3,516 1,280 442 – 663 534 – 3,952 – 750 – 1,125 999 – 999AEI 2016/RSU3 – 996 – 1,494 1,260 – – – 442 – 663 534 – – – 750 – 1,125 999 – –AEI 2015/RSU3 750 – – – – – – 1,280 – – – – – – – – – – – – –AEI 2011/RSU3 – – – – – – 1,704 – – – – – – 2,776 – – – – – – –GEI 2010/RSU3 – – – – – – 916 – – – – – – 1,569 – – – – – – –GEI 2009/RSU3 – – – – – 228 – – – – – – 376 – – – – – – – –GEI 2010/SAR4 – – – – – 438 – – – – – – 963 – – – – – – – –GEI 2008/SAR4 – – – – – – 263 – – – – – – 450 – – – – – – –

Total 3,007 3,997 1,009 5,491 4,790 2,432 8,668 5,144 1,785 459 2,448 2,061 4,189 9,740 – 3,033 783 4,158 3,780 – 2,781Pensions Service Cost5 368 483 483 483 483 368 483 998 235 235 235 235 998 235 – 222 222 222 222 – 222Total 3,375 4,480 1,492 5,974 5,273 2,800 9,151 6,142 2,020 694 2,683 2,296 5,187 9,975 – 3,255 1,005 4,380 4,002 – 3,003


2 The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure includes the 2015 allocation and the accruals from the performance years 2013 and 2014 as adjusted by the sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.


4 The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following the vesting date. Hence the total payout from SARs depends on the individual decision by the Board

member. SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years and the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least 20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of the appreciation of the Dow Jones EURO STOXX Price Index (600).


6 Oliver Bäte’s base salary and his target for the annual bonus, the MTB tranche and equity-related com-pensation are disclosed based on his pro-rated base salary of € 750 THOU until 6 May 2015 and his pro-rated base salary of € 1,125 THOU from 7 May 2015. The different pro-rated amounts for base salary and target amounts result from different pro-rating methodologies, which are generally applied.

7 Michael Diekmann retired on 7 May 2015. He received a pro-rated base salary, annual bonus and equity-related compensation. The different pro-rated amounts for base salary and target amounts result from different pro-rating methodologies, which are generally applied. According to his service contract, he will receive his fixed salary of € 106.7 THOU per month for a period of 6 months from December 2015 as a transition payment, which will be set off against the regular pension payment. As part of the transition payment he will receive a payment of 25 % of the annual variable target compensation (€ 960 THOU) in spring 2017.

8 In addition to the amounts disclosed in the table, Sergio Balbinot received a buyout award of € 6 Mn to compensate for forfeited grants from his previous employer: € 3 Mn in cash and € 3 Mn in RSUs. 50 % of the cash amount was paid in February 2015 and 50 % will be paid in 2016 and are subject to clawback.



€ THOU Manuel Bauer 6 (Appointed: 01/2011; End of Service: 09/2015) Dr. Helga Jung (Appointed: 01/2012) Dr. Christof Mascher (Appointed: 09/2009)

GrantActual Grant

Payout1 Grant


Actual Grant

Payout1

2014 2015 2015 2014 2015 2014 2015 2015 2014 2015 2014 2015 2015 2014 2015


Base Salary 750 563 563 563 563 750 563 750 750 750 750 750 750 750 750 750 750 750 750 750 750Perquisites 15 1687 1687 1687 1687 15 1687 14 14 14 14 14 14 14 1628 2 2 2 2 1628 2Total fixed compensation 765 731 731 731 731 765 731 764 764 764 764 764 764 764 912 752 752 752 752 912 752

Annual Variable Compensation – Annual Bonus 750 561 – 842 629 778 629 750 750 – 1,125 758 763 758 750 750 – 1,125 859 907 859

Deferred CompensationMTB (2013 – 2015)2 750 561 – 842 629 – 2,335 750 750 – 1,125 758 – 2,534 750 750 – 1,125 859 – 2,885AEI 2016/RSU3 – 561 – 842 629 – – – 750 – 1,125 758 – – – 750 – 1,125 859 – –AEI 2015/RSU3 750 – – – – – – 750 – – – – – – 750 – – – – – –AEI 2011/RSU3 – – – – – – – – – – – – – – – – – – – – 1,584GEI 2010/RSU3 – – – – – – – – – – – – – – – – – – – – 593GEI 2009/RSU3 – – – – – – – – – – – – – – – – – – – 1319 –GEI 2010/SAR4 – – – – – – – – – – – – – – – – – – – – –GEI 2008/SAR4 – – – – – – – – – – – – – – – – – – – –

Total 3,015 2,414 731 3,257 2,619 1,543 3,695 3,014 3,014 764 4,139 3,037 1,527 4,056 3,162 3,002 752 4,127 3,330 1,950 6,673Pensions Service Cost5 317 296 296 296 296 317 296 302 274 274 274 274 302 274 339 348 348 348 348 339 348Total 3,332 2,710 1,027 3,553 2,915 1,860 3,991 3,316 3,288 1,038 4,413 3,311 1,829 4,330 3,501 3,350 1,100 4,475 3,678 2,289 7,021

€ THOU Jay Ralph (Appointed: 01/2010) Dr. Axel Theis (Appointed: 01/2015) Dr. Dieter Wemmer (Appointed: 01/2012)

GrantActual Grant

Payout1 Grant


Actual Grant

Payout1

2014 2015 2015 2014 2015 2014 2015 2015 2014 2015 2014 2015 2015 2014 2015


Base Salary 750 750 750 750 750 750 750 – 750 750 750 750 – 750 750 750 750 750 750 750 750Perquisites 30 19 19 19 19 30 19 – 27 27 27 27 – 27 17 16 16 16 16 17 16Total fixed compensation 780 769 769 769 769 780 769 – 777 777 777 777 – 777 767 766 766 766 766 767 766

Annual Variable Compensation – Annual Bonus 750 750 – 1,125 870 912 870 – 750 – 1,125 956 – 956 750 750 – 1,125 961 996 961

Deferred CompensationMTB (2013 – 2015)2 750 750 – 1,125 870 – 2,784 – 750 – 1,125 956 – 956 750 750 – 1,125 961 – 3,156AEI 2016/RSU3 – 750 – 1,125 870 – – – 750 – 1,125 956 – 750 – 1,125 961 – –AEI 2015/RSU3 750 – – – – – – – – – – – – – 750 – – – – – –AEI 2011/RSU3 – – – – – – 1,520 – – – – – – – – – – – – – –GEI 2010/RSU3 – – – – – – 876 – – – – – – – – – – – – – –GEI 2009/RSU3 – – – – – – – – – – – – – – – – – – – – –GEI 2010/SAR4 – – – – – – 719 – – – – – – – – – – – – – –GEI 2008/SAR4 – – – – – – – – – – – – – – – – – – – – –

Total 3,030 3,019 769 4,144 3,379 1,692 7,538 – 3,027 777 4,152 3,644 – 2,689 3,017 3,016 766 4,141 3,649 1,763 4,883Pensions Service Cost5 254 283 283 283 283 254 283 – 397 397 397 397 – 397 249 282 282 282 282 249 282Total 3,284 3,302 1,052 4,427 3,662 1,946 7,821 – 3,424 1,174 4,549 4,041 – 3,086 3,266 3,298 1,048 4,423 3,931 2,012 5,165


2 The MTB figure included in the Actual Grant column shows the annual accrual. The payout 2015 figure includes the 2015 accrual and the accruals from the performance years 2013 and 2014 as adjusted by the sustainability assessment. The MTB 2013 – 2015 is paid out in spring 2016.


4 The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been

awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following the vesting date. Hence the total payout from SARs depends on the individual decision by the Board member. SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years and the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least 20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of the appreciation of the Dow Jones EURO STOXX Price Index (600).

5 Pension Service Cost in accordance with IAS 19: represents the company cost, not the actual entitlement nor a payment; however, according to the German Corporate Governance Code, the Pension Service Cost is to be included in all columns.

6 According to his cancellation agreement and in addition to the amounts disclosed in the table, Manuel Bauer receives a payment of € 281.3 THOU in spring 2016 and a payment of € 187.5 THOU in 2015. The different pro-rated amounts for base salary and target amounts result from different pro-rating methodologies, which are generally applied.

7 Manuel Bauer received a payment of € 156 THOU in 2015 for 25 years of service to Allianz.8 Dr. Christof Mascher received a payment of € 156 THOU in 2014 for 25 years of service for Allianz. 9 Since Dr. Christof Mascher joined the Board of Management in September 2009, his pay-out from the

GEI 2009 plans are shown pro rata temporis.




of Business






€ THOU Manuel Bauer 6 (Appointed: 01/2011; End of Service: 09/2015) Dr. Helga Jung (Appointed: 01/2012) Dr. Christof Mascher (Appointed: 09/2009)

GrantActual Grant

Payout1 Grant


Actual Grant

Payout1

2014 2015 2015 2014 2015 2014 2015 2015 2014 2015 2014 2015 2015 2014 2015


Base Salary 750 563 563 563 563 750 563 750 750 750 750 750 750 750 750 750 750 750 750 750 750Perquisites 15 1687 1687 1687 1687 15 1687 14 14 14 14 14 14 14 1628 2 2 2 2 1628 2Total fixed compensation 765 731 731 731 731 765 731 764 764 764 764 764 764 764 912 752 752 752 752 912 752

Annual Variable Compensation – Annual Bonus 750 561 – 842 629 778 629 750 750 – 1,125 758 763 758 750 750 – 1,125 859 907 859

Deferred CompensationMTB (2013 – 2015)2 750 561 – 842 629 – 2,335 750 750 – 1,125 758 – 2,534 750 750 – 1,125 859 – 2,885AEI 2016/RSU3 – 561 – 842 629 – – – 750 – 1,125 758 – – – 750 – 1,125 859 – –AEI 2015/RSU3 750 – – – – – – 750 – – – – – – 750 – – – – – –AEI 2011/RSU3 – – – – – – – – – – – – – – – – – – – – 1,584GEI 2010/RSU3 – – – – – – – – – – – – – – – – – – – – 593GEI 2009/RSU3 – – – – – – – – – – – – – – – – – – – 1319 –GEI 2010/SAR4 – – – – – – – – – – – – – – – – – – – – –GEI 2008/SAR4 – – – – – – – – – – – – – – – – – – – –

Total 3,015 2,414 731 3,257 2,619 1,543 3,695 3,014 3,014 764 4,139 3,037 1,527 4,056 3,162 3,002 752 4,127 3,330 1,950 6,673Pensions Service Cost5 317 296 296 296 296 317 296 302 274 274 274 274 302 274 339 348 348 348 348 339 348Total 3,332 2,710 1,027 3,553 2,915 1,860 3,991 3,316 3,288 1,038 4,413 3,311 1,829 4,330 3,501 3,350 1,100 4,475 3,678 2,289 7,021

€ THOU Jay Ralph (Appointed: 01/2010) Dr. Axel Theis (Appointed: 01/2015) Dr. Dieter Wemmer (Appointed: 01/2012)

GrantActual Grant

Payout1 Grant


Actual Grant

Payout1

2014 2015 2015 2014 2015 2014 2015 2015 2014 2015 2014 2015 2015 2014 2015


Base Salary 750 750 750 750 750 750 750 – 750 750 750 750 – 750 750 750 750 750 750 750 750Perquisites 30 19 19 19 19 30 19 – 27 27 27 27 – 27 17 16 16 16 16 17 16Total fixed compensation 780 769 769 769 769 780 769 – 777 777 777 777 – 777 767 766 766 766 766 767 766

Annual Variable Compensation – Annual Bonus 750 750 – 1,125 870 912 870 – 750 – 1,125 956 – 956 750 750 – 1,125 961 996 961

Deferred CompensationMTB (2013 – 2015)2 750 750 – 1,125 870 – 2,784 – 750 – 1,125 956 – 956 750 750 – 1,125 961 – 3,156AEI 2016/RSU3 – 750 – 1,125 870 – – – 750 – 1,125 956 – 750 – 1,125 961 – –AEI 2015/RSU3 750 – – – – – – – – – – – – – 750 – – – – – –AEI 2011/RSU3 – – – – – – 1,520 – – – – – – – – – – – – – –GEI 2010/RSU3 – – – – – – 876 – – – – – – – – – – – – – –GEI 2009/RSU3 – – – – – – – – – – – – – – – – – – – – –GEI 2010/SAR4 – – – – – – 719 – – – – – – – – – – – – – –GEI 2008/SAR4 – – – – – – – – – – – – – – – – – – – – –

Total 3,030 3,019 769 4,144 3,379 1,692 7,538 – 3,027 777 4,152 3,644 – 2,689 3,017 3,016 766 4,141 3,649 1,763 4,883Pensions Service Cost5 254 283 283 283 283 254 283 – 397 397 397 397 – 397 249 282 282 282 282 249 282Total 3,284 3,302 1,052 4,427 3,662 1,946 7,821 – 3,424 1,174 4,549 4,041 – 3,086 3,266 3,298 1,048 4,423 3,931 2,012 5,165




4 The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been

awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following the vesting date. Hence the total payout from SARs depends on the individual decision by the Board member. SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years and the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least 20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of the appreciation of the Dow Jones EURO STOXX Price Index (600).

5 Pension Service Cost in accordance with IAS 19: represents the company cost, not the actual entitlement nor a payment; however, according to the German Corporate Governance Code, the Pension Service Cost is to be included in all columns.

6 According to his cancellation agreement and in addition to the amounts disclosed in the table, Manuel Bauer receives a payment of € 281.3 THOU in spring 2016 and a payment of € 187.5 THOU in 2015. The different pro-rated amounts for base salary and target amounts result from different pro-rating methodologies, which are generally applied.

7 Manuel Bauer received a payment of € 156 THOU in 2015 for 25 years of service to Allianz.8 Dr. Christof Mascher received a payment of € 156 THOU in 2014 for 25 years of service for Allianz. 9 Since Dr. Christof Mascher joined the Board of Management in September 2009, his pay-out from the

GEI 2009 plans are shown pro rata temporis.


IndIvIdual rEmunEratIon: 2015 and 2014

€ thou Dr. Werner Zedelius (Appointed: 01/2002)

GrantActual Grant

Payout1

2014 2015 2015 2014 2015

Target Target Min Max

Base Salary 750 750 750 750 750 750 750Perquisites 17 19 19 19 19 17 19Total fixed compensation 767 769 769 769 769 767 769

Annual Variable Compensation – Annual Bonus 750 750 – 1,125 959 1,032 959

Deferred CompensationmtB (2013 – 2015)2 750 750 – 1,125 959 – 3,066aEI 2016/rSu3 – 750 – 1,125 959 – –aEI 2015/rSu3 750 – – – – – –aEI 2011/rSu3 – – – – – – 1,505GEI 2010/rSu3 – – – – – – 1,225GEI 2009/rSu3 – – – – – 1,048 –GEI 2010/Sar4 – – – – – 187 591GEI 2008/Sar4 – – – – – – 328

Total 3,017 3,019 769 4,144 3,646 3,034 8,443Pensions Service Cost5 576 646 646 646 646 576 646Total 3,593 3,665 1,415 4,790 4,292 3,610 9,089

€ thou Dr. Maximilian Zimmerer (Appointed: 06/2012)

GrantActual Grant

Payout1

2014 2015 2015 2014 2015

Target Target Min Max

Base Salary 750 750 750 750 750 750 750Perquisites 10 16 16 16 16 10 16Total fixed compensation 760 766 766 766 766 760 766

Annual Variable Compensation – Annual Bonus 750 750 – 1,125 940 909 940

Deferred CompensationmtB (2013 – 2015)2 750 750 – 1,125 940 – 2,993aEI 2016/rSu3 – 750 – 1,125 940 – –aEI 2015/rSu3 750 – – – – – –aEI 2011/rSu3 – – – – – – –GEI 2010/rSu3 – – – – – – –GEI 2009/rSu3 – – – – – – –GEI 2010/Sar4 – – – – – – –GEI 2008/Sar4 – – – – – – –

Total 3,010 3,016 766 4,141 3,585 1,669 4,699Pensions Service Cost5 409 386 386 386 386 409 386Total 3,419 3,402 1,152 4,527 3,971 2,078 5,085




4 The equity-related remuneration that applied before 2010 consisted of two vehicles, virtual stock awards known as RSUs and virtual stock options known as “Stock Appreciation Rights” (SAR). Only RSUs have been awarded as of 1 January 2010. The remuneration system valid until December 2009 is disclosed in the Annual Report 2009 (starting on page 17). Whereas the GEI/RSU grants are automatically exercised at the

vesting date, the GEI/SAR grants are exercised by the Board member within the exercise period following the vesting date. Hence the total payout from SARs depends on the individual decision by the Board member. SARs are released to plan participants upon expiry of the vesting period, assuming all other exercise hurdles are met. For SARs granted until and including 2008, the vesting period was two years and the exercise period five years. For SARs granted 2009, the vesting period is four years and the exercise period three years. SARs can be exercised on the condition that the price of the Allianz SE stock is at least 20 % above the strike price at the time of grant. During the term of the plan, at least once on five consecu-tive trading days the Allianz SE stock must relatively appreciate at least 0.01 percentage points ahead of the appreciation of the Dow Jones EURO STOXX Price Index (600).





of Business





GERMAN ACCOUNTING STANDARD 17 DISCLOSUREThe total remuneration to be disclosed in accordance with German Accounting Standard 17 for 2015 is defined differently than in the Ger-man Corporate Governance Code and is composed of the base salary, perquisites, annual bonus, the fair value of the RSU grant and the pay-out of the MTB 2013 – 2015. However, it excludes the pension service cost. The information on remuneration for 2014 (in parentheses) does not disclose the notional accruals for the MTB 2013 – 2015:

Oliver Bäte € 7,046 (2,774) THOU, Michael Diekmann € 5,479 (4,397) THOU, Sergio Balbinot € 3,780 (–) THOU,Manuel Bauer € 4,325 (2,322) THOU, Dr. Helga Jung € 4,813 (2,290) THOU, Dr. Christof Mascher € 5,356 (2,726) THOU, Jay Ralph € 5,293 (2,603) THOU, Dr. Axel Theis € 3,644 (–) THOU,Dr. Dieter Wemmer € 5,844 (2,760) THOU, Dr. Werner Zedelius € 5,753 (2,831) THOU, Dr. Maximilian Zimmerer € 5,638 (2,578) THOU.

GRANTS, OUTSTANDING HOLDINGS AND EqUITY COMPENSATION ExPENSE UNDER THE ALLIANz EqUITY PROGRAM

RSU SAR

Board members

Number of RSU granted on

4/3/20161

Number of RSU held at

31/12/20151

Number of SAR held at

31/12/2015Strike Price

€

Oliver Bäte (Chairman since 7/5/2015) 10,898 38,613 – –Michael Diekmann (Chairman until 6/5/2015) 4,618 60,292 – –Sergio Balbinot2 8,638 24,820 – –Manuel Bauer 5,443 32,973 – –Dr. Helga Jung 6,551 27,331 3,167 87.36 Dr. Christof Mascher 7,430 34,260 7,892 87.36 Jay Ralph 7,521 34,968 – –Dr. Alex Theis 8,263 23,005 – –Dr. Dieter Wemmer 8,311 28,740 – –Dr. Werner Zedelius 8,291 35,513 – –Dr. Maximilian Zimmerer 8,124 29,892 – –Total 84,088 370,407 11,059 –

1 The relevant share price used to determine the fair market value, and hence the final number of RSUs granted, is only available after sign-off of the Annual Report by the external auditors, thus numbers are based on a best estimate. As disclosed in the Annual Report 2014, the equity-related grant in 2015 was made to participants as part of their 2014 remuneration. The disclosure in the Annual Report 2014 was based on a best estimate of the RSU grants. The actual grants deviated from the estimated values and

have to be disclosed accordingly. The actual RSU grants as of 12 March 2015 under the Allianz Equity Incentive are as follows: Oliver Bäte: 8,187, Michael Diekmann: 12,554, Manuel Bauer: 6,319, Dr. Helga Jung: 6,192, Dr. Christof Mascher: 7,364, Jay Ralph: 7,401, Dr. Dieter Wemmer: 8,088, Dr. Werner Zedelius: 8,379, Dr. Maximilian Zimmerer: 7,379.

2 24,820 RSUs granted in March 2015 include RSUs granted for his December 2014 employment contract.

The sum of the total remuneration of the Board of Management for 2015, including the payments of the MTB 2013 – 2015 and excluding the pension service cost, amounts to € 57 MN (2014 excluding the notional accruals for the MTB 2013 – 2015: € 29 MN). The corresponding amount, including pension service cost, equals € 61 MN (2014 excluding the notional accruals for the MTB 2013 – 2015: € 33 MN).

EqUITY-RELATED REMUNERATIONIn accordance with the approach described earlier, a number of RSUs were granted to each member of the Board of Management in March 2016, which will vest and be settled in 2020.


INDIVIDUAL PENSIONS: 2015 AND 2014

Total might not sum up due to rounding€ THOU

Defined benefit pension plan (frozen) Current pension plan AVK/APV1 Transition payment2 Total

Board of Management

Annual pension

payment3 SC4 DBO5 SC4 DBO5 SC4 DBO5 SC4 DBO5 SC4 DBO5

Oliver Bäte 2015 – – – 283 2,916 6 31 194 495 483 3,442(Chairman since 7/5/2015) 2014 – – – 322 2,722 3 26 44 284 368 3,032Michael Diekmann6 2015 337 – – 230 – 3 – 3 – 235 –(Chairman until 6/5/2015) 2014 337 306 9,963 577 6,373 10 253 105 1,278 998 17,867Sergio Balbinot 2015 – – – 219 243 2 2 1 1 222 246

2014 – – – – – – – – – – –Manuel Bauer7 2015 57 – – 287 – 9 – – – 296 –

2014 57 58 1,678 249 1,818 9 162 – – 317 3,658Dr. Helga Jung 2015 62 56 1,187 210 1,800 8 147 – – 274 3,134

2014 62 43 1,175 251 1,629 9 221 – – 302 3,025Dr. Christof Mascher 2015 – – – 280 3,016 5 37 63 508 348 3,562

2014 – – – 273 2,802 3 29 63 453 339 3,284Jay Ralph 2015 – – – 278 1,860 5 23 – 1 283 1,884

2014 – – – 251 1,618 3 17 – 1 254 1,635Dr. Axel Theis 2015 120 110 3,085 199 2,450 10 214 78 722 397 6,471

2014 – – – – – – – – – – –Dr. Dieter Wemmer 2015 – – – 278 1,181 4 8 – 1 282 1,190

2014 – – – 247 905 2 9 – 1 249 915Dr. Werner Zedelius 2015 225 213 5,751 398 4,151 9 203 26 641 646 10,746

2014 225 170 5,700 350 3,823 10 268 47 618 576 10,409Dr. Maximilian Zimmerer 2015 161 150 3,897 191 2,672 9 196 36 656 386 7,422

2014 161 118 3,869 232 2,524 9 264 49 627 409 7,285

1 Plan participants contribute 3 % of their relevant salary to the AVK. For the AVK the minimum guaranteed interest rate is 2.75 % – 3.50 % depending on the date of joining Allianz. In general, the company funds the balance required via the APV. Before Allianz’s founding of the APV in 1998, both Allianz and the plan participants were contributing to the AVK.

2 For details on the transition payment, see section Termination of service. In any event a death benefit is included.

3 Expected annual pension payment at assumed retirement age (age 60), excluding current pension plan.4 SC = service cost. Service costs are calculatory costs for the DBO related to the reported business year.

5 DBO = defined benefit obligation, end of year. The figures show the obligation for Allianz resulting from defined benefit plans taking into account realistic assumptions with regard to interest rate, dynamics and biometric probabilities.

6 As Michael Diekmann retired on 7 May 2015, his employer-financed DBO of € 17,277 THOU (thereof € 9,256 THOU for the frozen DB-Pension-Plan, € 6,416 THOU for the Current Pension Plan, € 303 THOU AVK/APV and € 1,301 THOU for the transition payment) is covered with former Board members.

7 As Manuel Bauer left Allianz on 30 September 2015, his employer-financed DBO of € 3,924 THOU (thereof € 1,699 THOU for the frozen DB-Pension-Plan, € 2,030 THOU for the Current Pension Plan and € 195 THOU AVK/APV) is covered with former Board members.

PENSIONSCompany contributions for the current plan remain unchanged from 2014 and are set at 27.98 % of the base salary, increasing to 34.98 % after five years and to 41.98 % after ten years of service on the Board of Man-agement. These are invested in a fund and have a guarantee for the contributions paid, but no further interest guarantee (for members of the Board of Management who were born before 1 January 1958, the guaranteed minimum interest rate remains at 2.75 % p.a.). For mem-bers with pension rights in the frozen defined benefit plan, the above contribution rates are reduced by 19 % of the expected annual pension from that frozen plan.

The Allianz Group paid € 4 MN (2014: € 4 MN) to increase reserves for pensions and similar benefits for active members of the Board of Management. As of 31 December 2015, reserves for pensions and similar benefits for active members of the Board of Management amounted to € 38 MN (2014: € 55 MN).




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In 2015, remuneration and other benefits totaling € 7 MN (2014: € 5 MN) were paid to former members of the Board of Management and dependents, while reserves for current pension obligations and accrued pension rights totaled € 116 MN (2014: € 95 MN).

LOANS TO MEMBERS Of THE BOARD Of MANAGEMENTAs of 31 December 2015, there were no outstanding loans granted by Allianz Group companies to members of the Board of Management.

TERMINATION Of SERVICEBoard of Management contracts are limited to a period of five years. For new appointments, in compliance with the German Corporate Governance Code, a shorter period is typical.

Arrangements for termination of service including retirement are as follows:

1. Board members who were appointed before 1 January 2010 – and who have served a term of at least five years – are eligible for a six-month transition payment after leaving the Board of Management.

2. Severance payments made to Board members in case of an early termination comply with the German Corporate Governance Code.

3. Special terms, also compliant with the German Corporate Gover-nance Code, apply if service is ended as a result of a “change of control”. This requires that a shareholder of Allianz SE, acting alone or together with other shareholders, holds more than 50 % of voting rights in Allianz SE.

Contracts do not contain provisions for any other cases of early ter-mination from the Board of Management.

Board members who were appointed before 1 January 2011 are eligible to use a company car for a period of one year after their retirement.

Termination of service – details of the payment arrangements

Transition payment (appointment before 1 January 2010)Board members receiving a transition payment are subject to a six-months non-compete clause.

The payment is calculated based on the last base salary (paid for a period of six months) and 25 % of the target variable remuneration at the date when notice is given. A Board member with a base salary of € 750 THOU would receive a maximum of € 937.5 THOU.

Where an Allianz pension is immediately payable, transition payment amounts are set off accordingly.

Severance payment capPayments to Board members for early termination with a remaining term of contract of more than two years are capped at two years’ com-pensation.

Whereby the annual compensation:

1. is calculated on the basis of the previous year’s annual base sal-ary plus 50 % of the target variable remuneration (annual bonus, accrued MTB and equity-related remuneration: For a Board member with a fixed base salary of € 750 THOU, the annual com-pensation would amount to € 1,875 THOU. Hence, he/she would receive a maximum severance payment of € 3,750 THOU) and

2. shall not exceed the latest year’s actual total compensation.

If the remaining term of contract is less than two years, the payment is pro-rated according to the remaining term of the contract.

Change of controlIn case of early termination as a result of a change of control, sever-ance payments made to Board members generally amount to three years’ compensation (annual compensation as defined above) and shall not exceed 150 % of the severance payment cap (a Board mem-ber with a base salary of € 750 THOU would receive a maximum of € 5,625 THOU).


MISCELLANEOUS

Internal and external Board appointmentsWhen a member of the Board of Management holds an appointment in another company within the Allianz Group, the full remuneration amount is transferred to Allianz SE. In recognition of the benefits to the organization, Board of Management members are allowed to accept a limited number of non-executive supervisory roles in appro-priate external organizations. In these cases, 50 % of the remunera-tion received is paid to Allianz SE. A Board member retains the full remuneration only when the Supervisory Board qualifies the appoint-ment as a personal one. Remuneration paid by external organiza-tions is shown in the annual reports of the companies concerned. The remuneration relating to the external appointment is set by the gov-erning body of the relevant organization.

OUTLOOK fOR 2016The Supervisory Board approved the following changes to the remu-neration of the Board of Management on 10 December 2015, and the Board of Management for all executives of Allianz Group from 2016 and 2017 in a phased approach:

The Performance Management system has been adjusted to support Allianz’s strategic Renewal Agenda. Under the new Inclusive Meritoc-racy approach, Group or company related financial KPIs make up half the performance equation. The other half is linked to individual per-formance, which consists of quantitative and predominantly qualita-tive criteria. The new approach places greater emphasis on behav-ioral aspects of performance through a common standard designed to drive cultural change across the Group. These are:

− Customer and Market Excellence, − Collaborative Leadership, − Entrepreneurship, − Trust.

The new MTB 2016 – 2018 comprises sustainability (performance and health) indicators, which are aligned with the Group’s external targets:

− Performance indicators: − Sustainable improvement/stabilization of Return on Equity

(excluding unrealized gains/losses on bonds), − Compliance with economic capitalization guidance (capital-

ization level and volatility limit);

− Health indicators (aligned with the Renewal Agenda): − True Customer Centricity, − Digital by Default, − Technical Excellence, − Growth Engines, − Inclusive Meritocracy (including gender diversity –

women in leadership).

The pension contributions as a percentage of base salary paid by the company to the contribution-based pension plan will have a unified level of 50 % of base salary in 2016.

Remuneration of the Supervisory Board The remuneration of the Supervisory Board is governed by the Statutes of Allianz SE and the German Stock Corporation Act. The structure of the Supervisory Board’s remuneration is regularly reviewed with respect to German, European and international corporate governance recommendations and regulations.

REMUNERATION PRINCIPLES − Set total remuneration at a level aligned with the scale and scope

of the Supervisory Board’s duties and appropriate to the com-pany’s activities and business and financial situation.

− Set a remuneration structure that takes into account the indi-vidual functions and responsibilities of Supervisory Board mem-bers, such as chair, vice-chair or committee mandates.

− Set a remuneration structure to allow for proper oversight of business as well as for adequate decisions on executive personnel and remuneration.

REMUNERATION STRUCTURE AND COMPONENTSThe remuneration structure, which comprises fixed and committee-related remuneration only, was approved by the Annual General Meeting 2011 and is laid down in the Statutes of Allianz SE.

Fixed annual remunerationThe remuneration of a Supervisory Board member consists of a fixed cash amount paid after the end of each business year for services rendered over that period. As in 2014, a regular Supervisory Board member receives a fixed remuneration of € 100 THOU per year. Each deputy Chairperson receives € 150 THOU and the Chairperson € 200 THOU.

Committee-related remunerationThe Chairperson and members of the Supervisory Board committees receive additional committee-related remuneration. The committee-related remuneration is as follows:

COMMITTEE-RELATED REMUNERATION

€ THOUCommittee Chair Member

Personnel Committee, Standing Committee, Risk Committee 40 20Audit Committee 80 40




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Attendance fees and expensesIn addition to the fixed and committee-related remuneration, mem-bers of the Supervisory Board receive an attendance fee of € 750 for each Supervisory Board or committee meeting they attend. Should several meetings be held on the same or consecutive days, the atten-dance fee will be paid only once. Allianz SE reimburses the members of the Supervisory Board for their out-of-pocket expenses and the VAT payable on their Supervisory Board activity. For the performance of his duties, the Chairman of the Supervisory Board is furthermore


Total might not sum up due to rounding€ THOU

Members of the Supervisory Board

Committees1Fixed

remu ne ration Commit tee

remu ne rationAtten dance

feesTotal

remu neration A N P R S

Dr. Helmut Perlet M C C C C 2015 200.0 160.0 6.7 366.7(Chairman) M C C C C 2014 200.0 160.0 8.2 368.2Dr. Wulf H. Bernotat C M 2015 150.0 100.0 4.5 254.5(Deputy Chairman) C M 2014 150.0 100.0 6.0 256.0Rolf Zimmermann M M 2015 150.0 40.0 5.2 195.2(Deputy Chairman) M M 2014 150.0 40.0 6.0 196.0Dante Barban M 2015 100.0 20.0 4.5 124.5

M 2014 100.0 20.0 3.7 123.7 Christine Bosse M M 2015 100.0 40.0 5.2 145.2

M M 2014 100.0 40.0 6.0 146.0Gabriele Burkhardt-Berg M 2015 100.0 20.0 4.5 124.5

M 2014 100.0 20.0 4.5 124.5Jean-Jacques Cette M 2015 100.0 40.0 6.0 146.0

M 2014 100.0 40.0 5.2 145.2Ira Gloe-Semler M 2015 100.0 40.0 6.0 146.0

M 2014 100.0 40.0 5.2 145.2Franz Heiß2 M 2015 58.3 11.7 2.2 72.2

M 2014 100.0 20.0 4.5 124.5Prof. Dr. Renate Köcher M M 2015 100.0 20.0 4.5 124.5

M M 2014 100.0 20.0 4.5 124.5Jürgen Lawrenz3 M 2015 41.7 8.3 2.2 52.2

2014 – – – –Jim Hagemann Snabe4 M 2015 100.0 40.0 5.2 145.2

M 2014 66.7 26.7 3.8 97.2Peter Denis Sutherland M M 2015 100.0 20.0 3.7 123.7

M M 2014 100.0 20.0 3.7 123.7Total5 2015 1,400.0 560.0 60.7 2,020.7

2014 1,408.4 563.4 63.5 2,035.3

Legend: C = Chairperson of the respective committee, M = Member of the respective committee

1 Abbreviations: A – Audit, N – Nomination, P – Personnel, R – Risk, S – Standing.2 Until 31 July 2015.3 Since 1 August 2015.

4 Since 7 May 2014.5 The total remuneration reflects the remuneration of the full Supervisory Board in the respective year.

entitled to an office with secretarial support and use of the Allianz carpool service. In the financial year 2015, Allianz SE reimbursed expenses totaling € 54,424.

REMUNERATION fOR 2015The total remuneration for all Supervisory Board members, including attendance fees, amounted to € 2,021 THOU in 2015 (€ 2,035 THOU in 2014). The following table shows the individual remuneration for 2015 and 2014:


Remuneration for mandates in other Allianz companies and for other functionsAll current employee representatives of the Supervisory Board except for Mrs. Ira Gloe-Semler are employed by Allianz Group companies and receive a market-aligned remuneration for their services.

Loans to members of the Supervisory Board On 31 December 2015 there was one outstanding loan granted by Allianz Group companies to members of the Supervisory Board of Allianz SE. One member received a mortgage loan of € 80 THOU from Allianz Bank in 2010. The loan has a duration of ten years and was granted at a normal market interest rate.




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Other InformationOur steeringBOARD OF MANAGEMENT AND ORGANIZATIONAL STRUCTUREAllianz SE has a divisional Board structure that is split into functional and business responsibilities. The business-related divisions reflect

TARGET SETTING AND MONITORINGThe Allianz Group steers its operating entities and business seg-ments via an integrated management and control process. This starts with the definition of a business-specific strategy and goals, which are discussed and agreed upon between the Holding and operating entities. According to this strategy, a three-year plan is prepared by the operating entities and aggregated to form the financial plans for the business divisions and the Allianz Group. This plan also forms the basis for our capital management. The Supervisory Board then approves the plan and sets corresponding targets for the Board of Management. The performance-based remuneration of the Board of Management is linked to short-, mid-, and long-term targets to ensure effectiveness and emphasize sustainability. For further details about the remuneration structure, including target setting and per-formance assessment, please refer to the Remuneration Report start-ing on page 47.

We continuously monitor our business performance against these targets through monthly reviews to ensure that appropriate measures can be taken in the event of negative developments. During these reviews, we monitor key operational and financial metrics.

our business segments Property-Casualty, Life/Health, Asset Manage-ment, and Corporate and Other and were overseen by six Board members (five since 1 September 2015). The remaining four divisions (i.e. Chairman of the Board of Management, Finance, Investments and Operations) focus on Group functions, along with business-related responsibilities.

Operating profit and net income are the main financial performance indicators across all business segments for the Allianz Group. In addition, we also use segment-specific figures such as the combined ratio for Property-Casualty, in-force and new business margins as well as margin on reserves for Life/Health, and the cost-income ratio for Asset Management. Furthermore, we use Return on Risk Capital (RoRC) for new business steering purposes in the Property-Casualty and Life/Health business segments.

Besides performance steering, we also have a risk steering pro-cess in place, which is described in the Risk and Opportunity Report starting on page 27.

Non-financial key performance indicators (KPIs) are mainly used for the sustainability assessment of the mid-term bonus. Under the category “partner of choice” the following KPIs are considered: Allianz Engagement Survey and Net Promoter Score results, brand per-formance (measured by the Funnel Performance Index), diversity development, organizational transparency (as measured by the Transparency International Corporate Reporting ranking) and sus-tainable development (as measured by widely-recognized indices and rankings).

MEMBERS OF THE BOARD OF MANAGEMENT AND THEIR RESpONSIBILITIES IN 2015

BOARD MEMBERS RESpONSIBILITIES

Oliver Bäte Chairman of the Board of Management (since 7 May 2015), Global Property-Casualty (until 6 May 2015)Michael Diekmann (until 6 May 2015) Chairman of the Board of Management (until 6 May 2015)Sergio Balbinot Insurance Western & Southern Europe, Insurance Middle East, Africa, India (since 1 September 2015)Manuel Bauer (until 31 August 2015) Insurance Growth Markets (until 31 August 2015)Dr. Helga Jung Insurance Iberia & Latin America, Legal & Compliance, Mergers & AcquisitionsDr. Christof Mascher Operations, Allianz Worldwide PartnersJay Ralph Asset Management, US Life InsuranceDr. Axel Theis Global Insurance Lines & Anglo Markets, Global Property-Casualty (since 7 May 2015)Dr. Dieter Wemmer Finance, Controlling, RiskDr. Werner Zedelius Insurance German Speaking Countries, Insurance Central & Eastern Europe (since 1 September 2015)Dr. Maximilian Zimmerer Investments, Global Life/Health, Insurance Asia Pacific (since 1 September 2015)


We define these sectors through dialogue with non-governmental organizations (NGos) and ongoing internal stakeholder engagement. For each sector, guidelines highlight the key ESG issues to be con-sidered.

In 2015, we reviewed our Weapons and Hydropower guidelines according to new best-practice information including international standards, frameworks and guidelines. Our intention is that no busi-ness is excluded by default, with a few exceptions such as our coal divestments for proprietary assets. Instead, each transaction is assessed on a case-by-case basis. Through this process we aim to bet-ter understand the risks associated with an insurance or investment transaction and to take all necessary measures to address and miti-gate these risks.

During 2015, 405 transactions (2014: 150 transactions)3 for our insurance and investment business were assessed for ESG consider-ations against our sensitive business guidelines. Of these, 47 % were approved, 50 % were conditionally approved and 3 % rejected.

TRUSTED COMpANyOur customers’ needs and how we meet them are central to our ambition to keep being part of the strongest financial community, and our aim to be the most trusted partner within our core business of insurance and investments. As part of this, our customers rightly expect that their personal information will be treated with utmost care.

As we move towards a culture of Digital by Default, we remain committed to protecting customer privacy and data security. We know that consumers are increasingly basing their loyalty around whether a business offers sustainable solutions that deliver both financial and societal value. To this end, our range of responsible products continues to grow, including insurance products that aim to reward low-carbon lifestyles and affordable microinsurance for individuals and small businesses around the world.

Customer centricityPutting True Customer Centricity at the core of our Renewal Agenda means providing a superior customer experience. By leveraging digi-tal technology, we can provide our customers with convenient access to Allianz at any time, creating easy, modular, and transparent offers with the flexibility for customization.

To continuously measure and benchmark our performance on customer centricity, we use key feedback tools such as the Net Pro-moter Score (NPS). NPS measures our customers’ willingness to re-commend Allianz and is broadly established as our key global metric for customer loyalty. Top-down NPS is conducted regularly according to global cross-industry standards and allows benchmarking against competitors in the respective markets.

3 Increase due to greater awareness and integration of process from March 2015.

Progress in Sustainable DevelopmentSustainable development means creating long-term economic value with a forward-thinking approach to corporate governance, environ-mental stewardship, and social responsibility. This is fundamental to our day-to-day insurance and asset management business, as we have to deliver on our promises to customers not only today, but also in 20 or 30 years.

We work with different stakeholder groups to identify what is materially important for sustainable development. Our material issues are those deemed to be crucial for business success while also important to our stakeholders.

The following pages highlight some of our key sustainability approaches and major developments in 2015. The Allianz Group Sus-tainability Report, with the full details of our sustainability strategy, approach and progress, is available on our sustainability website.1

SUSTAINABILITy MANAGEMENT AND GOvERNANCEThe responsibilities of our sustainability management include man-aging the strategic framework for Group-wide sustainability activities, developing and introducing relevant policies, and supporting operat-ing entities in integrating the Group’s strategic approach and policies.

The highest governing body for sustainability-related issues is the environmental, social and governance (ESG) Board, which was established in 2012. It consists of three Allianz SE Board members, who meet quarterly. The ESG Board is responsible for integrating ESG into all business lines and core processes that deal with insurance and invest ment decisions. It also leads associated stakeholder engagement.

During 2015, we focused on further embedding sustainability into our core business. We did this through internal debate, stake-holder engagement, being an incubator for new business opportuni-ties and pilot projects.

ESG in insurance and investmentsThe approach we take to ESG issues is not a sustainability “add-on”; it is part of everyday decision-making. As an insurer, we carefully manage ESG risks in underwriting. As an investor of our proprietary assets, we incorporate ESG factors into our investment process. And as an asset manager of third-party assets, we systematically integrate the evaluation of ESG risk and opportunities into our investment decisions.

At the core, ESG integration into our insurance business and our direct investments of proprietary assets is carried out by a global ESG screening process. We have identified 13 sensitive business sectors2 where we see significant risks across regions and lines of business.

1 www.allianz.com/sustainability2 Agriculture, animal testing, animal welfare, betting and gambling, clinical trials, defense, human rights,

hydro-electric power, infrastructure, mining, nuclear energy, oil and gas and the sex industry.

www.allianz.com/sustainability




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As we see a clear correlation of NPS performance with sustain-able growth, a superior customer experience is our top priority. We set clear customer-oriented targets, which are hardwired into our culture, planning processes, and incentives.

Allianz – one of the world’s strongest brandsThe brand Allianz1 plays a key role in driving sustainable growth. It fosters close bonds with our customers – which are even more impor-tant in a digital context. In turn, this helps us to build sustainable relationships: Trust in the name Allianz helps us to attract new customers, engage with our products and services and maintain customer loyalty in the long term.

Our strong brand performance was again acknowledged in the annual 100 Best Global Brands Ranking from Interbrand: In 2015, our brand value increased by 10 % to USD 8.5 BN (2014: USD 7.7 BN) and has more than doubled compared to 2007 when we first entered the ran-king. According to Interbrand, Allianz now ranks 54th among the world’s top 100 brands.

Corporate responsibility is a vital component in our established sports and culture partnerships strategy – be it our commitment to the Paralympic Movement around the topics of diversity and inclu-sion, or our Road Safety program with 41 local entities participating in 2015. Our annual youth programs inspire and unite young genera-tions around one common passion – for example, the Allianz Junior Football Camp where teens from all over the world apply to train with FC Bayern München youth coaches and meet their idols, or the Allianz Junior Music Camp where star pianist Lang Lang and his Lang Lang International Music Foundation encourage the next generation of classical musicians.

Environmental managementAs a business dealing with risks, managing our environmental impact has always been very important to us. Our ESG materiality assessment continues to show that climate change is a key environ-mental risk and opportunity. For this reason, we prioritize carbon reduction also in our own activities to reduce the environmental foot-print of our operations.

Our strategic approach to reducing our carbon footprint is three-fold: avoid and reduce our emissions, substitute with lower-carbon alternatives, and offset our remaining emissions through direct investments in high-quality carbon reduction projects.

Since over 98 % of our emissions come from energy consumption, travel, and paper use, the focus of our carbon reduction activities is in these areas. We had set ourselves a target to reduce our carbon emissions per employee by 35 % by 2015 (against a 2006 baseline) and to reduce the energy consumption per employee by 10 % (against a 2010

1 Our Allianz trademark is registered and protected worldwide, as are our domains. Furthermore, we have registered our corporate design and brand claim “Allianz. With you from A – Z” in the relevant countries worldwide.

baseline). We achieved both targets ahead of time and our final per-formance in the target year 2015 was at 43.3 % Co2 and 25.7 % energy reduction for the Allianz Group.

We have been a carbon-neutral company since 2012 and in 2015 301,339 credits were offset from group-wide projects, each one accounting for one metric ton of carbon.

Compliance managementOur risk management framework includes compliance risks. A com-pliance management system helps us to ensure compliance with internationally recognized laws, rules, and regulations, while addi-tional risk identification exercises help us to continually improve our approach. We take a proactive stance, working with organizations such as the German Institute for Compliance and the Global Insur-ance Chief Compliance Officers Forum to enhance understanding of compliance issues and share best practice.

To ensure continuous improvement, all compliance risks are monitored and reported within the Group. Our compliance quality assurance program comprises self-assessments, on-site reviews and local spot checks, and our intranet-based compliance case reporting tool provides Group-wide oversight by passing information to the audit and integrity committees.

COMMITTED CORpORATE CITIZENAs a global company with a presence in nearly 70 countries, we believe that acting as a responsible corporate citizen is good for soci-ety and good for business. By helping to build stronger and more inclusive communities, we are supporting the development of a more stable economic landscape. This, in turn, ensures resilient markets for our products and services.

Much of our time and skill is dedicated to empowering the next generation. That is why we have developed Future Generation, a framework to support children, adolescents and young adults on a range of issues. This is also why we continue to fund SoS Children’s Villages, an organization that provides orphaned and abandoned children in 125 countries with loving family homes. We support short-term emergency measures and long-term help for children through local activities as well as advocacy at a global level. In 2015, we estab-lished local partnerships with SoS villages in France, Romania, India, and Germany.

With our collective financial and business skills, we assist char-itable organizations through employee volunteering. This helps to build skills and motivation that can be brought back into the work-place. In 2015, we launched ACT, an online marketplace for employee volunteering, starting with a pilot in Germany. The marketplace fea-tures Allianz projects and moreover, employees can promote their own volunteering activities.


Political engagementIn 2015, Allianz SE merged its regulatory and political departments to form a Group center for Regulatory and Public Policy Affairs. It acts as a global center of competence for all our subsidiaries and its remit is to develop regulatory and political strategy, coordinate our engage-ments, and analyze current and emerging issues and our positions on them. Two key lobbying issues in 2015 were:

− Digitalization and data security: We support the European Com-mission’s digital agenda to foster innovation, economic growth, and progress. We are actively contributing to public discussions on these issues, with a special focus on the practicability of reg-ulation for the Group.

− Consumer protection: As part of our commitment to customer privacy and security, we support promoting transparency, sim-plicity, and fairness in the market for consumer financial prod-ucts and services. We contributed to the E.U. green paper on Retail Financial Services and Insurance. This paper addresses some of the obstacles consumers face when offering or purchasing finan-cial services.

ATTRACTIvE EMpLOyEROur business strategy requires us to have the best people in place in order to deliver success today and over the long term. We also apply a consistent approach to human resources (HR) management across the Group and we do this through strategic HR frameworks, principles, and tools.

Talent managementTo ensure the quality and performance of our employees, we focus on managing talent and careers; developing technical and leadership skills, and meeting future workforce needs. We work to create a sus-tainable performance culture which empowers individuals to realize their full potential through a wide range of learning and development opportunities.

DiversityAt Allianz, we recognize the importance of having a diverse, inclusive workforce that is made up of employees from different backgrounds. To accomplish this, we have implemented a number of initiatives, including those focused on gender, ethnicity, age, religion, sexual orientation, disability, education, and nationality.

Sustainable value approach to remunerationOur remuneration and incentive structures are designed to encour-age sustainable value creation and offer both monetary and non-monetary rewards. Our remuneration system is based on the follow-ing principles:

− Provide a transparent, fair and integrated offering to attract, motivate, and retain highly qualified employees.

− Deliver total rewards that are competitive in the relevant markets.

− Align remuneration with the performance of the individual and the achievement of Allianz’s financial and strategic goal to “pay for performance“.

− Operate effectively in different performance scenarios and busi-ness circumstances.

− Reward risk control and avoid inappropriate risk-taking.

Wellbeing and employee engagementWe take an active role in promoting the physical and mental health of our employees, including a variety of stress management pro-grams and measures. Our central “Work Well” program analyzes root causes of stress to find the most effective solutions.

Each year, we conduct the Allianz Engagement Survey (AES) to gather employee feedback on a range of issues, including those iden-tified as promoting a high-performance culture. In 2015, over 1,200 employees were invited to participate. The response rate of 88 % was in line with 2014.

The SE Works CouncilThe SE Works Council represents the interests of employees of Allianz SE and its subsidiaries with registered offices in E.U. member states, the European Economic Area and Switzerland in cross-border matters. The Works Council was informed and consulted on several items in its two regular sessions in 2015. Besides the business situation and prospects for Allianz in Europe, the items discussed included operational and strategic cross-border activities (e.g. the Renewal Agenda of our new CEo Oliver Baete, the Digitalization strategy of the Allianz Group, the Community Engagement plans of Allianz4Good and important cross-border HR projects). On several occasions, the SE Works Council’s Executive Committee was also informed and con-sulted on an ad-hoc basis.

The constructive dialogue with the SE Works Council has helped us build a good mutual understanding of the challenges ahead and ensures productive cooperation between management and employee representatives at Allianz. One of the outcomes of this dialogue was the signing of pan-European agreements between Allianz SE and the SE Works Council on guidelines concerning work-related stress and lifelong learning.

BranchesIn 2015, Allianz SE operated its reinsurance business from Munich and branch offices in Singapore, Labuan (Malaysia), Wallisellen (Suisse) and Dublin (Ireland).




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SHARES wITH SpECIAL RIGHTS CONFERRING pOwERS OF CONTROLThere are no shares with special rights conferring powers of control.

LEGAL AND STATUTORy pROvISIONS AppLICABLE TO THE AppOINTMENT AND REMOvAL OF MEMBERS OF THE BOARD OF MANAGEMENT AND TO AMENDMENTS OF THE STATUTESThe Supervisory Board appoints the members of Allianz SE’s Board of Management for a maximum term of five years (Article 9 (1), Article 39 (2) and Article 46 of the SE Regulation, §§ 84, 85 of the German Stock Corporation Act and § 5 (3) of the Statutes). Reappointments, in each case for a maximum of five years, are permitted. A simple majority of the votes cast in the Supervisory Board is required to appoint mem-bers of the Board of Management. In the case of a tie vote, the Chair-person of the Supervisory Board, who pursuant to Article 42, sen-tence 2 of the SE Regulation must be a shareholder representative, shall have the casting vote (§ 8 (3) of the Statutes). If the Chairperson does not participate in the vote the Deputy Chairperson shall have the casting vote, provided he or she is a shareholder representative. A Deputy Chairperson who is an employee representative has no casting vote (§ 8 (3) of the Statutes). If a required member of the Board of Management is missing, in urgent cases the courts must appoint such member upon the application of an interested party (§ 85 of the German Stock Corporation Act). The Supervisory Board may dismiss members of the Board of Management if there is an important reason (§ 84 (3) of the German Stock Corporation Act).

According to § 5 (1) of the Statutes, the Board of Management shall consist of at least two persons. Otherwise, the Supervisory Board determines the number of members. The Supervisory Board has appointed a Chairman of the Board of Management pursuant to § 84 (2) of the German Stock Corporation Act.

German insurance supervisory law requires that members of the Board of Management have the reliability and professional compe-tence needed to manage an insurance company. A person cannot become a member of the Board of Management if he or she is already a manager of two other insurance undertakings, pension funds, insurance holding companies or insurance special purpose vehicles. However, the supervisory authority may permit more than two such mandates if they are held within the same group (§ 24 (3) of the German Insurance Supervision Act (“Versicherungsaufsichts gesetz” in the version applicable as from 1 January 2016, VAG). The Federal Financial Services Supervisory Authority (“Bundes anstalt für Finanz dienst-leistungsaufsicht”) must be notified about the intention of appointing a Board of Management member pursuant to § 47 No. 1 VAG.

Amendments to the Statutes must be adopted by the General Meeting. § 13 (4) sentence 2 of the Statutes of Allianz SE stipulates that, unless this conflicts with mandatory law, changes to the Statutes require a two-thirds majority of the votes cast, or, if at least one half of the share capital is represented, a simple majority of the votes cast.

Takeover-related statements and explanations(Statements pursuant to § 289 (4) of the German Commercial Code and explanatory report)

COMpOSITION OF SHARE CApITALAs of 31 December 2015, the share capital of Allianz SE was € 1,169,920,000. It was divided into 457,000,000 registered and fully paid-up shares with no-par value and a corresponding share capital amount of € 2.56 per share. All shares carry the same rights and obli-gations. Each no-par value share carries one vote.

RESTRICTIONS ON vOTING RIGHTS AND SHARE TRANSFERS; ExERCISE OF vOTING RIGHTS IN CASE OF EMpLOyEE EqUITy pARTICIpATIONSShares may only be transferred with the consent of the company. The company may withhold a duly applied approval only if it deems this to be necessary in the interest of the company on exceptional grounds. The applicant will be informed of the reasons.

Shares acquired by employees of the Allianz Group as part of the Employee Stock Purchase Plan are in principle subject to a one-year lock-up period. Outside Germany, the lock-up period may in some cases be up to five years. In some countries, in order to ensure that the lock-up period is observed, the employee shares are held through-out that period by a bank, another natural person or a legal entity acting as a trustee. Nevertheless, employees may instruct the trustee to exercise voting rights or have power of attorney granted to them to exercise such voting rights. Lock-up periods contribute to the Employee Stock Purchase Plan’s aims of committing employees to the company and letting them benefit from the performance of the share price.

INTERESTS IN THE SHARE CApITAL ExCEEDING 10 % OF THE vOTING RIGHTSNo direct or indirect interests in the share capital of Allianz SE that exceed 10 % of the voting rights have been reported to Allianz SE; nor are we otherwise aware of any such interests.

Events after the balance sheet dateNEw qUOTA SHARES wITH ALLIANZ ENTITIES Allianz SE signed five new quota share reinsurance agreements with Allianz Entities in France, Spain, Austria, and Benelux starting 1 Janu-ary 2016. These new quota shares have a cession rate of 20 % of the net portfolio of the ceding Allianz Entities. In addition, there is a new quota share agreement with Allianz S.p.A. Italy with a cession rate of 37 % of the net motor portfolio.


The Statutes thereby make use of the option set out in § 51 sentence 1 of the SE Implementation Act (“SE-Ausführungsgesetz”) which is based upon Article 59 (1) and (2) of the SE Regulation. A larger major-ity is, inter alia, required for a change in the corporate object or the relocation of the registered office to another E.U. member state (§ 51 sentence 2 of the SE Implementation Act). The Supervisory Board may alter the wording of the Statutes (§ 179 (1) sentence 2 of the Ger-man Stock Corporation Act and § 10 of the Statutes).

AUTHORIZATION OF THE BOARD OF MANAGEMENT TO ISSUE AND REpURCHASE SHARESThe Board of Management is authorized to issue shares as well as to acquire and use treasury shares as follows:

It may increase the company’s share capital, on or before 6 May 2019, with the approval of the Supervisory Board, by issuing new reg-istered no-par value shares against contributions in cash and/or in kind, on one or more occasions:

− Up to a total of € 550,000,000 (Authorized Capital 2014/I). In case of a capital increase against cash contribution, the Board of Management may exclude the shareholders’ subscription rights for these shares with the consent of the Supervisory Board, (i) for fractional amounts, (ii) in order to safeguard the rights pertain-ing to holders of convertible bonds or bonds with warrants, including mandatory convertible bonds, and (iii) in the event of a capital increase of up to 10 %, if the issue price of the new shares is not significantly less than the stock market price. The Board of Management may furthermore exclude the shareholders’ sub-scription rights with the consent of the Supervisory Board, in the event of a capital increase against contributions in kind.

− Up to a total of € 13,720,000 (Authorized Capital 2014/II). The share-holders’ subscription rights can be excluded in order to issue the new shares to employees of Allianz SE and its Group companies as well as for fractional amounts.

The company’s share capital is conditionally increased by up to € 250,000,000 (Conditional Capital 2010/2014). This conditional capital increase will only be carried out to the extent that conversion or option rights resulting from bonds issued by Allianz SE or its subsidiaries on the basis of the authorization of the General Meeting of 5 May 2010 or on the basis of the authorization of the General Meeting of 7 May 2014 are exercised, or that conversion obligations tied to such bonds are fulfilled.

The Board of Management may buy back and use Allianz shares for other purposes until 6 May 2019 on the basis of the authorization of the General Meeting of 7 May 2014 (§ 71 (1) No. 8 of the German Stock Corporation Act). Together with other treasury shares that are held by Allianz SE, or which are attributable to it under §§ 71a et seq. of the German Stock Corporation Act, such shares may not exceed 10 % of the share capital at any time. The shares acquired pursuant to this

authorization may be used, under exclusion of the shareholders’ sub-scription rights, for any legally admissible purposes, and in particular those specified in the authorization. Furthermore, the acqui sition of treasury shares under this authorization may also be carried out using derivatives such as put options, call options, forward purchases or a combination thereof, provided such derivatives do not relate to more than 5 % of the share capital.

Domestic or foreign banks that are majority-owned by Allianz SE may buy and sell Allianz shares for trading purposes (§ 71 (1) No. 7 and (2) of the German Stock Corporation Act) under an authorization of the General Meeting valid until 6 May 2019. The total number of shares acquired thereunder, together with treasury shares held by Allianz SE or attributable to it under §§ 71a et seq. of the German Stock Corporation Act, shall at no time exceed 10 % of the share capital of Allianz SE.

ESSENTIAL AGREEMENTS OF ALLIANZ SE wITH CHANGE OF CONTROL CLAUSES AND COMpENSATION AGREEMENTS pROvIDING FOR TAkEOvER SCENARIOSThe following essential agreements of the company are subject to a change of control condition following a takeover bid:

− Our reinsurance contracts, in principle, include a clause under which both parties to the contract have an extraordinary termi-nation right in the case where the other party to the contract merges or its ownership or control situation changes materially. Agreements with brokers regarding services connected with the purchase of reinsurance cover also provide for termination rights in case of a change of control. Such clauses are standard market practice.

− The exclusive bancassurance distribution agreement between Allianz and HSBC for life insurance products in Asia (China, Indo-nesia, Malaysia, Australia, Sri Lanka, Taiwan, Brunei, Philippines) includes a clause under which both parties have an extraordi-nary termination right in case there is a change of control of the other party’s ultimate holding company.

− The exclusive bancassurance distribution agreement between Allianz SE and HSBC for life insurance products in Turkey includes a clause under which both parties have an extraordinary termina-tion right in case there is a change of control of the other party’s ultimate holding company.

− The framework agreements between Allianz SE and the subsi-diaries of various car manufacturers (FCE Bank plc, Volkswagen Financial Services AG, respectively) relating to the distribution of car insurance by the respective car manufacturers each include a clause under which each party has an extraordinary termina-tion right in case there is a change of control of the other party.




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Internal controls over financial reporting(Statements pursuant to § 289 (5) of the German Commercial Code and explanatory report)

In line with both our prudent approach to risk governance and com-pliance with regulatory requirements, we have created a structure to identify and mitigate the risk of material errors in our financial state-ments. Our internal control system over financial reporting (ICoFR) is based on the framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (CoSo) and is regularly reviewed and updated. Our approach also includes the following five interrelated components: Control Environment, Risk Assessment, Control Activities, Information and Communication and Monitoring. These five components are covered by an Entity Level Control Assess-ment Process (ELCA), IT General Controls (ITGC) and controls at pro-cess levels. The ELCA framework contains controls such as a compli-ance program or committee governance structure. In the ITGC framework we implemented, for example, controls regarding access rights management or project and change management controls.

ACCOUNTING pROCESSESThe accounting processes we use to produce our financial statement are based on a central IT-reporting and a local general ledger solu-tion. The latter is largely harmonized throughout the Group, using standardized processes, master data, posting logics and interfaces for the data delivery to the Group. Access rights to accounting systems are managed according to strict authorization procedures.

Internal controls are embedded in the accounting processes to safeguard the accuracy, completeness and consistency of the infor-mation provided in the financial statements.

− Bilateral credit agreements in some cases provide for termina-tion rights if there is a change of control, mostly defined as the acquisition of at least 30 % of the voting rights within the meaning of § 29 (2) of the German Takeover Act (“Wertpapiererwerbs- und Übernahmegesetz”, WpÜG). If such termination rights are exer-cised, the respective credit lines have to be replaced by new credit lines under conditions then applicable.

The company has entered into the following compensation agree-ments with members of the Board of Management and employees providing for the event of a takeover bid:

A change of control clause in the service contracts of the mem-bers of Allianz SE’s Board of Management provides that, if within twelve months after the acquisition of more than 50 % of the compa-ny’s share capital by one shareholder or several shareholders acting in concert (change of control) the appointment as a member of the Board of Management is revoked unilaterally by the Supervisory Board, or if the mandate is ended by mutual agreement, or if the Management Board member resigns his or her office because the responsibilities as a Board member are significantly reduced through no fault of the Board member, he or she shall receive his or her con-tractual remuneration for the remaining term of the service contract, but limited, for the purpose hereof, to three years, in the form of a one-off payment. The one-off payment is based on the fixed remu-neration plus 50 % of the variable remuneration, however, this basis being limited to the amount paid for the last fiscal year. To the extent that the remaining term of the service contract is less than three years, the one-off payment is generally increased in line with a term of three years. This applies accordingly if, within two years of a change of control, a mandate in the Board of Management is coming to an end and is not extended; the one-off payment will then be granted for the period between the end of the mandate and the end of the three-year period after the change of control. For further details, please refer to the Remuneration Report starting on page 47.

Under the Allianz Sustained Performance Plan (ASPP), Restricted Stock Units (RSU) – i.e. virtual Allianz shares – are granted as a stock-based remuneration component to senior management of the Allianz Group worldwide. In addition, under the Group Equity Incentive (GEI) scheme, Stock Appreciation Rights (SAR) – i.e. virtual options on Allianz shares – were also granted until 2010. Some of these are still outstanding. The conditions for these RSU and SAR contain change of control clauses, which apply if a majority of the voting share capital in Allianz SE is acquired, directly or indirectly, by one or more third parties who do not belong to the Allianz Group and which provide for an exception from the usual vesting and exercise periods. The RSU will be released, in line with their general conditions, by the company for the relevant plan participants on the day of the change of control without observing any vesting period that would otherwise apply. The cash amount payable per RSU must equal the average market value of the Allianz share and be at least the price offered per Allianz share in a preceding tender offer. In case of a change of control as described

above, SAR will be exercised, in line with their general conditions, by the company for the relevant plan participants on the day of the change of control without observing any vesting period. By providing for the non-application of the vesting period in the event of a change of control, the terms take into account the fact that the conditions under which the share price moves are very different when there is a change in control.


Our approach can be summarized as follows:

− We use a top-down, risk-based approach to determine the accounts that should fall under the scope of our internal control system over financial reporting. The methodology is described in our ICoFR manual. During the scoping process, materiality and susceptibility to a misstatement are considered simultaneously. The final results are documented in the list of significant accounts. In addition to the quantitative ICoFR calculation, we also consider qualitative criteria.

− Then, we identify risks that could lead to material financial misstatements including all relevant root causes (for example human processing errors, fraud, system weaknesses and external factors). After identifying and analyzing the risks, the potential impacts and occurrence probabilities are evaluated.

− Preventive and detective key controls over the financial reporting process are put in place to reduce the likelihood and the impact of financial misstatements. If a potential risk materializes, actions are taken to reduce the impact of the financial misstate-ment. Given the strong dependence of financial reporting pro-cesses upon information technology systems, we also include IT controls.

− Finally, we focus on ensuring that controls are appropriately designed and effectively carried out. We have set consistent documentation requirements for elements such as processes, related key controls and their execution. We conduct an annual assessment of our control system to maintain and continuously enhance its effectiveness. Internal Audit ensures that the overall quality of our control system is subjected to regular control-testing, to ensure reasonable design and operating effectiveness.

Risk capital controlsSimilar to our ICoFR framework, we have also established a robust and comprehensive control concept in the risk capital calculation and aggregation process, since our internal risk capital calculations incorporate economic factors that are not fully reflected in the accounting results. Therefore we integrated additional controls within our management reporting processes according to Solvency II require-ments to ensure that these estimates are adequately controlled.

These controls include the validation of models and assump-tions by independent reviews and continuous benchmarking to mar-ket and/or peer assumptions and practices. We benchmark and explain our non-market assumptions against practices in the industry, actuarial associations and guidance from supervisory authorities.

INTERNAL CONTROL SySTEM AppROACH

INTERNAL CONTROL SySTEM AppROACH

pROCESS

Scoping Identify risks Implement key controls Assessment

Determination of significant accounts to be covered by internal control systems

Identification of risk scenarios that could result in a material financial misstatement

Implementation of key controls that prevent or detect errors or fraud resulting from risk scenarios

Assessment of the design and operating effectiveness of key controls


cFinAnciAl StAtementS oF AlliAnz Se


FinAnciAl StAtementS oF AlliAnz Se

Pages 70 – 107

72 Financial Statements 72 Balance sheet 74 Income statement

75 Notes to the Financial Statements 75 Basis of preparation 75 Accounting, valuation and calculation methods 78 Supplementary information on assets 82 Supplementary information on equity and liabilities 89 Supplementary information on the income statement 92 Other information101 List of participations of Allianz SE, Munich

as of 31 December 2015 according to § 285 No. 11 HGB in conjunction with § 286 (3) No. 1 HGB

106 Further Information106 Responsibility statement107 Auditor’s report


C Financial Statements of Allianz SE

72 Financial Statements 75 Notes to the Financial Statements 106 Further Information


Financial StatementsBalance Sheet

€ thouas of 31 December Note 2015 2015 2014

ASSEtSA. Intangible assets 1, 2

I. Self-produced industrial property rights and similar rights and assets 5,842 7,912II. Licenses acquired against payment, industrial property rights

and similar rights and assets as well as licenses for such rights and assets 7,038 23,400III. Advance payments made 5,800 11,114

18,680 42,426B. Investments 1, 3 – 5

I. Real estate 254,389 257,836II. Investments in affiliated enterprises and participations 73,711,243 71,169,721III. Other investments 27,726,413 26,472,127IV. Funds held by others under reinsurance business assumed 6,094,716 3,057,085

107,786,761 100,956,769C. Receivables

I. Accounts receivable on reinsurance business 495,670 536,700thereof from affiliated enterprises: € 295,293 thou (2014: € 283,495 thou) thereof from participations1: € 5,630 thou (2014: € 26,074 thou)

II. Other receivables 6 4,794,374 4,119,691thereof from affiliated enterprises: € 4,206,194 thou (2014: € 3,485,502 thou) thereof from participations1: € 584 thou (2014: € 2,054 thou)

5,290,044 4,656,391D. Other assets

I. Tangible fixed assets and inventories 12,438 13,825II. Cash with banks, checks and cash on hand 350,371 82,755III. Miscellaneous assets 7 427,924 277,207

790,733 373,787E. Deferred charges and prepaid expenses 8

I. Accrued interests and rent 289,692 275,111II. Other deferred charges and prepaid expenses 133,756 89,004

423,448 364,115Total assets 114,309,666 106,393,488

1 Companies in which we hold a participating interest.




€ thouas of 31 December Note 2015 2015 2015 2014

Equity And LiAbiLitiESA. Shareholders’ equity 10

I. Issued capital 1,169,920 1,169,920Less: mathematical value of own shares 5,570 7,043

1,164,350 1,162,877II. Additional paid-in capital 27,799,741 27,772,828III. Revenue reserves

1. Statutory reserves 1,229 1,2292. Other revenue reserves 11,783,945 11,730,376

11,785,174 11,731,605IV. Net earnings 4,228,626 3,786,746

44,977,891 44,454,056B. Subordinated liabilities 11, 14 12,339,743 11,741,064C. Insurance reserves 12

I. Unearned premiums1. Gross 1,226,423 899,1922. Less: amounts ceded 65,920 77,392

1,160,503 821,800II. Aggregate policy reserves

1. Gross 1,746,057 1,690,2382. Less: amounts ceded 32,723 33,347

1,713,334 1,656,891III. Reserves for loss and loss adjustment expenses

1. Gross 9,420,326 6,691,4102. Less: amounts ceded 970,320 968,190

8,450,006 5,723,220IV. Reserves for premium refunds

1. Gross 20,916 16,2212. Less: amounts ceded 26 9

20,890 16,212V. Claims equalization and similar reserves 1,787,813 1,595,093VI. Other insurance reserves

1. Gross 34,958 37,5632. Less: amounts ceded (95) –

35,053 37,56313,167,599 9,850,779

D. Other provisions 13 7,500,216 6,654,662E. Funds held with reinsurance business ceded 63,416 61,313F. Other liabilities

I. Accounts payable on reinsurance business 231,551 383,003thereof to affiliated enterprises: € 135,928 thou (2014: € 276,336 thou)thereof to participations1: € 9,180 thou (2014: € 71 thou)

II. Bonds 14 3,257,608 3,652,165thereof to affiliated enterprises: € 3,257,608 thou (2014: € 3,652,165 thou)

III. Liabilities to banks 14 1,344,406 168IV. Miscellaneous liabilities 14 31,415,685 29,579,623

including taxes of: € 10,956 thou (2014: € 51,982 thou)thereof to affiliated enterprises: € 29,752,397 thou (2014: € 27,911,737 thou)thereof to participations1: € 2 thou (2014: € 175 thou)

36,249,250 33,614,959G. Deferred income 11,551 16,655Total equity and liabilities 114,309,666 106,393,488

1 Companies in which we hold a participating interest.


Income Statement

€ thouNote 2015 2015 2015 2014

I. Technical account1. Premiums earned (net)

a) Gross premiums written 16 8,328,023 7,084,080b) Ceded premiums written (807,561) (1,005,917)

7,520,462 6,078,163c) Change in gross unearned premiums (325,174) (401,058)d) Change in ceded unearned premiums (11,991) 8,252

(337,165) (392,806)Premiums earned (net) 7,183,297 5,685,357

2. Allocated interest return (net) 17 58,631 55,2723. Other underwriting income (net) 434 3,9794. Loss and loss adjustment expenses (net) 18

a) Claims paidaa) Gross (2,564,120) (3,321,021)bb) Amounts ceded in reinsurance 305,455 359,341

(2,258,665) (2,961,680)b) Change in reserve for loss and loss adjustment expenses (net)

aa) Gross (2,628,164) (574,181)bb) Amounts ceded in reinsurance (20,274) (277,999)

(2,648,438) (852,180)Loss and loss adjustment expenses (net) (4,907,103) (3,813,860)

5. Change in other insurance reserves (net) 19 (38,829) (48,026)6. Expenses for premium refunds (net) (4,584) (1,243)7. Underwriting expenses (net) 20 (2,064,964) (1,634,624)8. Other underwriting expenses (net) (3,021) (1,268)9. Subtotal (Net underwriting result) 223,861 245,587

10. Change in claims equalization and similar reserves (192,720) (146,653)11. Net technical result 31,141 98,934

II. Non-technical account1. Investment income 21 8,130,158 6,417,0952. Investment expenses 22 (2,121,314) (1,810,882)3. Investment result 6,008,844 4,606,2134. Allocated interest return (59,706) (56,495)

5,949,138 4,549,7185. Other income 2,507,577 1,785,2576. Other expenses (5,289,676) (3,481,517)7. Other non-technical result 23 (2,782,099) (1,696,260)8. Non-technical result 3,167,039 2,853,4589. Net operating income 3,198,180 2,952,392

10. Income taxes 24 (305,987) (334,432)Amounts charged to other Group companies 663,974 511,520

357,987 177,08811. Other taxes (2,534) (6,414)12. Taxes 355,453 170,67413. Net income 3,553,633 3,123,06614. Unappropriated earnings carried forward 674,993 663,68015. Net earnings 25 4,228,626 3,786,746




Notes to the Financial StatementsLoans in affiliated enterprises and participationsThese items are normally recorded at cost less impairments in accor-dance with § 253 (3) sentence 3 of the German Commercial Code. However, when converting foreign currency loans into Euros at the reporting date the strict lower of cost or market value principle is applied.

OthEr invEStmEntS

Stocks, interests in funds, debt securities and other fixed and variable income securities, miscellaneous investmentsThese items are generally valued in accordance with § 341b (2) of the German Commercial Code in conjunction with § 253 (1), (4) and (5) of the German Commercial Code using the acquisition cost or the lower stock exchange or market value on the balance sheet date. We calcu-late an average acquisition cost for securities of the same type acquired at different cost. Long-term investments in mutual funds are valued according to the regulations that apply to investments pursuant to § 341b (2) of the German Commercial Code in conjunction with § 253 (1) and (3) of the code using the moderate lower of cost or market value principle.

Registered bonds, debentures and loansThese items are recorded at cost less impairments in accordance with § 253 (3) sentence 3 of the German Commercial Code. In accor-dance with § 341c of the code, amortized cost accounting is applied and the difference between acquisition cost and the redemption amount is amortized over the remaining period based on the effective interest method.

Securities to meet liabilities resulting from retirement provision commitmentsThese securities are valued at fair value in accordance with § 253 (1) of the German Commercial Code and offset against the liabilities in accordance with § 246 (2) of the code. Pension plan reinsurance con-tracts are recorded at asset value.

tangiblE fixEd aSSEtS, invEntOriES and miScEllanEOuS aSSEtSThese items are recorded at acquisition cost less depreciation. Low-value assets costing up to € 150 are written off immediately. A compound item for tax purposes formed in accordance with § 6 (2a) of the German Income Tax Act (EStG) for assets from € 150 to € 1,000 is depreciated by one fifth each year.

Basis of PreParationThe Financial Statements and the Management Report have been prepared in accordance with the regulations in the German Com-mercial Code (HGB), the German Stock Corporation Act (AktG), the Law on the Supervision of Insurance Enterprises (VAG) and the Gov-ernment Order on the External Accounting Requirements of Insurance Enterprises (RechVersV).

All amounts in the financial statements are in thousands of Euros (€ THOU), unless otherwise stated.

accounting, Valuation and calculation MethodsintangiblE aSSEtSIntangible assets are recorded at acquisition or construction cost less depreciation. Internally generated intangible assets are capitalized and depreciated on a straight-line basis. In case of a permanent impairment, an unscheduled write-down is recognized.

rEal EStatE, rEal EStatE rightS and buildingS, including buildingS On land nOt OwnEd by allianz SEThese items are recorded at acquisition or construction cost less depreciation. Depreciation is measured according to ordinary useful life. In case of a permanent impairment, the values of these items are adjusted through unscheduled write-downs.

invEStmEntS in affiliatEd EntErpriSES and participatiOnS

Shares in affiliated enterprises and participationsThese are recorded at cost less impairments, in accordance with § 341b (1) of the German Commercial Code in conjunction with § 253 (3) sentence 3 of the German Commercial Code.

Impairments are measured either as the difference between acquisition cost and the respective value in accordance with IDW RS HFA 10 in conjunction with IDW S1 or as the difference between acqui-sition cost and the lower share price as of 31 December 2015.

Where the market value at the balance sheet date was higher than the previous year’s valuation, the value is written up to no more than the historical acquisition cost.


rEmaining aSSEtSThese consist of the following:

− Funds held by others under reinsurance business assumed, − Bank deposits, − Accounts receivables on reinsurance business, − Other receivables, − Cash with banks and cash on hand, − Accrued interest and rents.

These items are recorded at face value less repayments and impair-ments.

inSurancE rESErvESThese consist of the following:

− Unearned premiums, − Aggregate policy reserves, − Reserves for loss and loss adjustment expenses, − Reserves for premium refunds, − Claims equalization and similar reserves, − Other insurance reserves.

Insurance reserves are set up according to the German Commercial Code and RechVersV requirements. The primary goal is to ensure our ongoing ability to satisfy reinsurance contract liabilities in all cases. Generally, the reinsurance reserves are booked according to the cedent’s statements. For claims incurred but not yet reported, or not sufficiently reported, additional reserves are calculated using actu-arial techniques.

Insurance reserves in the ceded reinsurance business are calcu-lated according to the terms of the retrocession contracts.

Written premiums for future periods are accrued in unearned premiums.

Aggregate policy reserves for Life/Health reinsurance are gener-ally recorded according to the amounts in the cedent’s statements.

Reserves for loss and loss adjustment expenses are established for the payment of losses and loss adjustment expenses on claims that have occurred but are not yet settled. Reserves for loss and loss adjustment expenses fall into two categories: case reserves for reported claims and reserves for incurred but not yet reported, or not sufficiently reported, losses.

For Property-Casualty reinsurance, the equalization reserve, the reserve for nuclear plants, the product liability reserve for major pharmaceutical risks and reserves for risks relating to terrorist attacks are calculated according to § 341h of the German Commercial Code in conjunction with § 29 and § 30 RechVersV. The reserves are set up to moderate substantial fluctuations in the claims of individual lines of business. In cases where above-average or below-average claims occur, changes in the reserves mitigate the technical result for the individual lines of business.

OthEr prOviSiOnSPension provisions are calculated on the basis of actuarial principles. With respect to the discount rate, the simplification option set out in § 253 (2) sentence 2 of the German Commercial Code has been applied (duration of fifteen years). The effect resulting from the change in the discount rate is reported under other non-technical result. The provi-sions for jubilee payments, birthday payments and phased-in early retirement benefits are also calculated on the basis of actuarial prin-ciples. For further information regarding the accounting for pensions and similar obligations please refer to note 13 and the section Other Information of our financial statements.

Remaining other provisions are recognized at the settlement amount. Long-term provisions are discounted applying the net approach in accordance with IDW RS HFA 34.

rEmaining liabilitiESThese consist of the following:

− Subordinated liabilities, − Funds held with reinsurance business ceded, − Other liabilities.

These items are valued at the settlement amount. Annuities are recorded at present value.

prEpaid ExpEnSES and dEfErrEd incOmEAccrued interest and rent are valued at nominal amounts. Premiums and discounts carried forward as prepaid income and expenses are amortized over the remaining life of the related financial instruments.




currEncy tranSlatiOnTransactions are generally recorded in the original currency and con-verted into Euros at the relevant daily rate (middle forex spot rate).

Loans to affiliated enterprises denominated in foreign curren-cies are converted into Euros with the middle forex spot rate as of the reporting date and applying the strict lower of cost or market value principle.

The valuation of foreign currency shares in affiliated enterprises and participations, stocks, interests in funds and other variable and fixed income securities is based on converting the value in the original currency into Euros using the middle forex spot rate as of the report-ing date.

Comparing the acquisition cost in Euros with the value in Euros as described above, the moderate lower-value principle is applied for affiliated enterprises and participations. For other investments, the strict lower of cost or market value principle is applied.

As a result of this valuation method, currency gains and losses are not separately determined and shown as foreign exchange gains/losses in the other non-technical result. Instead, the net effect of both changes in currency exchange rates and value in original currency is reflected in the impairments/reversals of impairments and realized gains/losses calculated for these asset classes and disclosed in the investment result.

Issued debt securities and borrowings denominated in foreign currencies are converted into Euros at the middle forex spot rate as of the reporting date. Unrealized losses are recognized immediately in the income statement, while unrealized gains are not.

All other monetary assets and liabilities recorded in foreign cur-rency are valued with the middle forex spot rate as of the reporting date. Exchange rate differences resulting from this valuation of foreign currency positions are reflected in the other non-technical result.

valuatiOn unitSIn 2015 Allianz SE made use of the option of forming valuation units as defined in § 254 of the German Commercial Code. This option is used for derivative contracts in which Allianz SE acts as an intra-group clearing agency. In this function, Allianz SE enters into derivative transactions with other Group companies and hedges the exposure resulting from these transactions by entering into positions with the same term and structure that are exact mirror images but entered into with different business partners. Contrary positions whose per-formance completely offset each other have been combined into valuation units and form a perfect micro hedge.

When accounting for valuation units, the “freezing” method is applied, in which the offsetting changes in value of the single posi-tions which form a valuation unit are not recorded in the income statement (see also note 15).


Supplementary InformatIon on aSSetS

1 – Change of assets a., B.I. through B.III. in the 2015 fiscal year

Values stated as of 31 December 2014 Additions (+)

Transfers

Disposals (-)

Revaluation (+)

Depreciation (-)

Net additions (Net disposals)

Values stated as of 31 December 2015

€ thou % € thou € thou € thou € thou € thou € thou € thou %

A. Intangible assets1. Self-produced industrial property rights and similar rights and assets 7,912 1,732 – 2,859 – 943 (2,070) 5,8422. Licenses acquired against payment, industrial property rights and similar rights

and assets as well as licenses for such rights and assets 23,400 1,066 6,268 17,412 – 6,284 (16,362) 7,0383. Advance payments made 11,114 2,373 (6,268) 1,419 – – (5,314) 5,800Subtotal A. 42,426 5,171 – 21,690 – 7,227 (23,746) 18,680

B.I. Real estate, real estate rights and buildings, including buildings on land not owned by Allianz SE 257,836 0.3 1,525 – – 790 5,762 (3,447) 254,389 0.2

B.II. Investments in affiliated enterprises and participations1. Shares in affiliated enterprises 64,203,408 65.6 3,152,667 – 263,025 – 359,945 2,529,697 66,733,105 65.62. Loans to affiliated enterprises 6,459,203 6.6 12,900 – – – 1,191 11,709 6,470,912 6.43. Participations 507,110 0.5 1,025 – 909 – – 116 507,226 0.5Subtotal B.II. 71,169,721 72.7 3,166,592 – 263,934 – 361,136 2,541,522 73,711,243 72.5

B.III. Other investments1. Stocks, interests in funds and other variable-income securities 1,037,075 1.1 824,056 – 584,738 – 5,489 233,829 1,270,904 1.22. Debt securities and other fixed-income securities 20,646,646 21.1 26,774,271 – 23,530,343 2,230 221,748 3,024,410 23,671,056 23.33. Other loans

a) Registered bonds 2,280,104 2.3 1,082,360 – 1,774,075 – – (691,715) 1,588,389 1.6b) Loans and promissory notes 1,288,515 1.3 154,802 – 1,318,929 – – (1,164,127) 124,388 0.1

4. Bank deposits 1,219,787 1.2 – – 148,111 – – (148,111) 1,071,676 1.1Subtotal B.III. 26,472,127 27.0 28,835,489 – 27,356,196 2,230 227,237 1,254,286 27,726,413 27.3Subtotal B.I. - B.III. 97,899,684 100.0 32,003,606 – 27,620,130 3,020 594,135 3,792,361 101,692,045 100.0

Total 97,942,110 32,008,777 – 27,641,820 3,020 601,362 3,768,615 101,710,725

2 – Intangible assetsIntangible assets decreased from € 42 MN to € 19 MN in 2015. This resulted almost entirely from the transfer of Solvency II software to Allianz Managed Operations & Services SE. The remaining intangible assets consist mainly of purchased software.

In 2015 the research and development costs of Allianz SE amounted to € 1.7 MN and represent in total the development costs for the internally generated software.




Supplementary InformatIon on aSSetS

1 – Change of assets a., B.I. through B.III. in the 2015 fiscal year

Values stated as of 31 December 2014 Additions (+)

Transfers

Disposals (-)

Revaluation (+)

Depreciation (-)

Net additions (Net disposals)

Values stated as of 31 December 2015

€ thou % € thou € thou € thou € thou € thou € thou € thou %

A. Intangible assets1. Self-produced industrial property rights and similar rights and assets 7,912 1,732 – 2,859 – 943 (2,070) 5,8422. Licenses acquired against payment, industrial property rights and similar rights

and assets as well as licenses for such rights and assets 23,400 1,066 6,268 17,412 – 6,284 (16,362) 7,0383. Advance payments made 11,114 2,373 (6,268) 1,419 – – (5,314) 5,800Subtotal A. 42,426 5,171 – 21,690 – 7,227 (23,746) 18,680

B.I. Real estate, real estate rights and buildings, including buildings on land not owned by Allianz SE 257,836 0.3 1,525 – – 790 5,762 (3,447) 254,389 0.2

B.II. Investments in affiliated enterprises and participations1. Shares in affiliated enterprises 64,203,408 65.6 3,152,667 – 263,025 – 359,945 2,529,697 66,733,105 65.62. Loans to affiliated enterprises 6,459,203 6.6 12,900 – – – 1,191 11,709 6,470,912 6.43. Participations 507,110 0.5 1,025 – 909 – – 116 507,226 0.5Subtotal B.II. 71,169,721 72.7 3,166,592 – 263,934 – 361,136 2,541,522 73,711,243 72.5

B.III. Other investments1. Stocks, interests in funds and other variable-income securities 1,037,075 1.1 824,056 – 584,738 – 5,489 233,829 1,270,904 1.22. Debt securities and other fixed-income securities 20,646,646 21.1 26,774,271 – 23,530,343 2,230 221,748 3,024,410 23,671,056 23.33. Other loans

a) Registered bonds 2,280,104 2.3 1,082,360 – 1,774,075 – – (691,715) 1,588,389 1.6b) Loans and promissory notes 1,288,515 1.3 154,802 – 1,318,929 – – (1,164,127) 124,388 0.1

4. Bank deposits 1,219,787 1.2 – – 148,111 – – (148,111) 1,071,676 1.1Subtotal B.III. 26,472,127 27.0 28,835,489 – 27,356,196 2,230 227,237 1,254,286 27,726,413 27.3Subtotal B.I. - B.III. 97,899,684 100.0 32,003,606 – 27,620,130 3,020 594,135 3,792,361 101,692,045 100.0

Total 97,942,110 32,008,777 – 27,641,820 3,020 601,362 3,768,615 101,710,725


3 – Market value of investmentsFair value and carrying amount of the investments, subdivided into individual asset categories, were as follows:

Book ValuES and MarkEt ValuES of InVEStMEntS

€ BnBook value Market value Valuation reserve

as of 31 December 2015 2014 2015 2014 2015 2014

Real estate 0.3 0.3 0.5 0.5 0.2 0.2Equity securities 68.5 65.8 74.5 73.0 6.0 7.2Debt securities 23.6 20.6 24.1 21.3 0.5 0.7Loans 8.2 10.0 9.2 10.9 1.0 0.9Bank deposits 1.1 1.2 1.1 1.2 – –Funds held by others under reinsurance business assumed 6.1 3.1 6.1 3.1 – –Total 107.8 101.0 115.5 110.0 7.7 9.0

ValuatIon MEthodS uSEd to dEtErMInE thE MarkEt ValuE

Real estateLand and buildings are valued using the discounted cash flow me thod, or for new buildings at cost. The fair value was determined during the fiscal year.

Equity securitiesInvestments in companies quoted on the stock exchange are generally measured by the stock exchange price quoted on the last trading day of 2015. Nonquoted companies are valued at their net asset value calculated by the German Association for Financial Analysis and Asset Management’s (DVFA) method. For recent transactions the transaction prices were used.

Debt securitiesThese items are measured at the stock exchange value quoted on the last trading day of 2015 or, if there is no active market, at the prices obtained from brokers or pricing services.

LoansLoans are valued using the discounted cash flow method. The relevant discount rates are derived from observable market parameters and reflect the remaining life and credit risk of the instruments.

Bank deposits and funds held by others under reinsurance business assumedThere are no differences between the book value and the fair value of those items.

dEtaIlS In accordancE wIth § 285 no. 18 of thE GErMan coMMErcIal codE on InVEStMEntS whErE thE Book ValuE ExcEEdS thE MarkEt ValuEWe disregarded market value declines of € 11 MN for loans with a book value of € 600 MN. Based on the expected development of market conditions, the decline in market value is not expected to be of an enduring nature. We intend to hold loans until maturity in order to ensure a repayment at par value.

4 – Investments in affiliated enterprises and participations

€ Bnas of 31 December 2015 2014 Change

Shares in affiliated enterprises 66.7 64.2 2.5Loans to affiliated enterprises 6.5 6.5 –Participations 0.5 0.5 –Total 73.7 71.2 2.5




The book value of shares in affiliated enterprises went up by € 2.5 BN to € 66.7 BN (2014: € 64.2 BN). This increase consists of the following:

− € 2.4 BN capital increase of our subsidiary AZArges Vermögensverwaltungsgesellschaft mbH in order to fund the acquisition of intragroup debt,

− further various capital increases of Group companies amounting to overall € 0.5 BN, thereof € 0.2 BN at Allianz Finance II Luxembourg S.à.r.l. and € 0.1 BN at Allianz Holding Eins GmbH,

− impairment of € 0.4 BN attributable to our subsidiary Allianz Life Insurance Company Ltd. Korea.

5 – Interests in investment fundsDetails on interests in investment funds in accordance with § 285 (26) of the German Commercial Code:

€ thou

Book value Fair valueValuation

reserve Dividend

distribution

Equity funds aZrE aZd P & c Master Fund 425,282 497,203 71,921 2,908Allianz Global Equity Selection Fund 3,668 4,055 387 19Allianz Discovery Asia Strategy Fund 3,910 4,527 617 –Allianz Global Emerging Markets Equity Dividend Fund 2,959 2,959 – –Subtotal equity funds 435,819 508,744 72,925 2,927Bond fundsAllianz rE Asia Fund 628,370 699,523 71,153 17,110PIMco Covered Bond Source ucItS Etf 99,599 103,536 3,937 893Allianz Emerging Markets Local Currency Bond Fund 3,662 3,662 – 159Allianz Emerging Markets Flexible Bond Fund 3,922 4,004 82 226PIMco Select Funds uS High Yield BB-B Bond 95,309 95,309 – 2,234Allianz SE – Pd Fund 10 10 – –Subtotal bond funds 830,872 906,044 75,172 20,622Mixed fundsAllianz Europe Income and Growth Fund 3,615 3,615 – 76Total 1,270,306 1,418,403 148,097 23,625

Allianz SE holds more than 10.0 % of the respective shares of these investment funds. The fund shares can be redeemed each trading day.

6 – Other receivablesThe rise of € 675 MN in this position mainly resulted from an increase of intragroup receivables (€ 810 MN). Compared to this, a pior year intragroup receivable from Allianz Finance II Luxembourg was cleared for a dividend refund of € 240 MN in the fiscal year.

7 – Miscellaneous assetsAt the end of the fiscal year this position mainly included variation margins paid in connection with financial derivative transactions (€ 415 MN).

8 – Deferred charges and prepaid expensesThis item includes accrued interests in the amount of € 290 MN (2014: € 275 MN), which mainly result from our investments in debt securities and loans, as well as other deferred charges and prepaid expenses amounting to € 134 MN (2014: € 89 MN), which comprise upfront payments for swap contracts and the discount on borrowings from affiliated enterprises, issued bonds and subordinated liabilities.

9 – CollateralAssets amounting to € 0.8 BN (2014: € 1.3 BN), of which € 0.6 BN (2014: € 0.9 BN) were in favor of affiliated enterprises, were pledged as collateral for liabilities.


Supplementary InformatIon on equIty and lIabIlItIeS

Convertible subordinated notes totaling € 500,000.0 THOU, which may be converted into Allianz shares, were issued against cash in July 2011. Within 10 years after the issuance a mandatory conversion of the notes into Allianz shares at the then prevailing share price may apply if certain events occur, subject to a floor price of at least € 74.90 per share. Within the same period, the investors have the right to convert the notes into Allianz shares at a price of € 187.26 per share. Both conversion prices are subject to anti-dilution provisions. The subscription rights of shareholders for these convertible notes have been excluded with the consent of the Supervisory Board and pursu-ant to the authorization of the AGM on 5 May 2010. The granting of new shares to persons entitled under such convertible notes is secured by the Conditional Capital 2010/2014. On or before 31 December 2015, there was no conversion of any such notes into new shares.

ChangES in thE numbEr of iSSuEd SharES outStanding

numbEr of iSSuEd SharES outStanding

2015 2014

Number of issued shares outstanding as of 1 January 454,248,039 453,736,619Capital increase for employee share programs – 500,000Changes in number of treasury shares 575,599 11,420Number of issued shares outstanding as of 31 December 454,823,638 454,248,039Treasury shares1 2,176,362 2,751,961Total number of issued shares 457,000,000 457,000,000

1 Thereof 2 175 776 (2014: 2 751 360) own shares held by Allianz Se.

In the year ending 31 December 2015, no new shares (2014: 500,000) were issued out of the Authorized Capital 2014/II for the purpose of covering subscriptions by employees in the context of Employee Stock Purchase Plans. In lieu thereof, the shares for covering sub-scriptions of the Employee Stock Purchase Plans in 2015 were taken from the stock of own shares specially earmarked for this purpose. The Authorized Capital remained unchanged during the year ending 31 December 2015.

dividEndS For the year ending 31 December 2015, the Board of Management will propose to shareholders at the AGM the distribution of a dividend of € 7.30 per qualifying share. For the year ended 31 December 2014, Allianz SE paid a dividend of € 6.85 per qualifying share.

10 – Shareholders’ equityiSSuEd CapitalIssued capital as of 31 December 2015 amounted to € 1,169,920.0 THOU divided into 457,000,000 registered shares. The shares have no-par value but a mathematical per-share value of € 2.56 each as a propor-tion of the issued capital.

authorizEd CapitalAs of 31 December 2015, Allianz SE had authorized capital for the issu-ance of 214,843,750 shares until 6 May 2019, with a notional amount of € 550,000.0 THOU (Authorized Capital 2014/I). The shareholders’ sub-scription rights can be excluded for capital increases against contri-bution in kind. For a capital increase against contributions in cash, the shareholders’ subscription rights can be excluded: (i) for frac-tional amounts, (ii) if the issue price is not significantly below the market price and the shares issued under exclusion of the subscrip-tion rights pursuant to § 186 (3) sentence 4 of the German Stock Cor-poration Act (Aktiengesetz) do not exceed 10 % of the share capital, and (iii) to the extent necessary to grant a subscription right for new shares to the holders of bonds that carry conversion or option rights or provide for mandatory conversion. The subscription rights for new shares from the Authorized Capital 2014/I and the Conditional Capital 2010/2014 may only be excluded for the proportionate amount of the share capital of up to € 233,728.0 THOU (corresponding to 20 % of the share capital at year-end 2013).

In addition, Allianz SE has authorized capital (Authorized Capital 2014/II) for the issuance of shares against cash until 6 May 2019. The shareholders’ subscription rights can be excluded in order to issue new shares to employees of Allianz SE and its Group companies. As of 31 December 2015, the Authorized Capital 2014/II amounted to € 13,720.0 THOU (5,359,375 shares).

Further, as of 31 December 2015, Allianz SE had conditional capi-tal totaling € 250,000.0 THOU (97,656,250 shares) (Conditional Capital 2010/2014). This conditional capital increase will only be carried out if conversion or option rights attached to bonds which Allianz SE or its Group companies have issued against cash payments according to the resolutions of the AGM on 5 May 2010 or 7 May 2014, are exer-cised or the conversion obligations under such bonds are fulfilled, and only insofar as the conversion or option rights or conversion obli-gations are not serviced through treasury shares or through shares from authorized capital.




trEaSury SharESAs of 31 December 2015, Allianz SE held 2,175,776 (2014: 2,751,360) own shares. Of these, 1,522,732 (2014: 145,191) were held for covering future subscriptions by employees in Germany and abroad in the context of Employee Stock Purchase Plans, whereas 653,044 (2014: 2,606,169) were held as a hedge for obligations from the Allianz Equity Incentive Program (former Group Equity Incentive Program).

In March 2015, a total of 1,953,125 own shares were rededicated to the new purpose of “covering subscriptions by employees in the context of Employee Stock Purchase Plans of Allianz SE and its sub-sidiaries in Germany and abroad”. Previously, these shares served as a hedge for obligations resulting from the Allianz Equity Incentive Program and had been bought on the basis of former authorizations in accordance with§ 71 (1) No. 8 AktG.

In the year ending 31 December 2015, 575,584 (2014: 510,435) shares were sold in the context of the Employee Stock Purchase Plan to employees of Allianz SE and its subsidiaries in Germany and abroad. Of these, 145,191 (2014: 155,626) originated from the capital increase for the Employee Stock Purchase Plan in 2014 (2013). 430,393 shares were taken from the stock of own shares dedicated to this pur-pose. This is in contrast to 2014, when no own shares had been taken from the stock of own shares. Employees of the Allianz Group pur-chased shares at prices ranging from € 98.42 (2014: € 93.52) to € 125.84 (2014: € 111.33) per share. At 31 December 2015, no own shares were held anymore which derived from a capital increase for the purposes of Employee Stock Purchase Plans. As of 31 December 2015, the remaining own shares of Allianz SE held for covering subscriptions by employees in the context of Employee Stock Purchase Plan of Allianz SE and its subsidiaries in Germany and abroad amounted to 1,522,732 shares. In the year ending 31 December 2015, the total num-ber of own shares of Allianz SE decreased by 575,584 (2014: decrease of 10,435) shares, which corresponds to € 1,473,495 (2014: € 26,714) or 0.126 % (2014: 0.002 %) of issued capital.

The own shares of Allianz SE and its subsidiaries represent € 5,571 THOU or 0.48 % of the share capital.

additional paid-in Capital

€ thou

as of 31 December 2014 27,772,828Own shares: realized gains 26,913as of 31 December 2015 27,799,741

rEvEnuE rESErvES

€ thou

as of 31 December 2014

Own shares exceeding

mathematical value 2015

1. Statutory reserves 1,229 – 1,2292. Other revenue reserves1 11,730,376 53,569 11,783,945Total 11,731,605 53,569 11,785,174

1 Thereof reserves for own shares € 5,570 tHou (2014: € 7,043 tHou).

bar on dividEnd diStributionThe unappropriated reserves plus the unappropriated earnings car-ried forward are not fully available for the distribution of a dividend due to legal restrictions.

The unappropriated reserves of Allianz SE correspond to the other revenue reserves.

The unappropriated reserves plus the unappropriated earnings carried forward are barred from dividend distribution totaling to the amount of € 11,412 THOU (2014: € 14,955 THOU). Thereof € 5,570 THOU (2014: € 7,043 THOU) relates to the mathematical value of own shares deducted from issued capital according to § 272 (1a) of the German Commercial Code. Furthermore, € 5,842 THOU (2014: € 7,912 THOU) account for internally generated intangible assets according to § 268 (8) of the German Commercial Code.

11 – Subordinated liabilitiesSubordinated liabilities increased to € 12.3 BN in 2015 (2014: € 11.7 BN).1 € 7.5 BN (2014: € 5.8 BN) were external subordinated liabilities result-ing from bonds issued by Allianz SE directly. In 2015, Allianz SE placed a new subordinated bond with a volume of € 1.5 BN. A further book value increase of € 0.2 BN was driven by the foreign currency revalua-tion of our subordinated liabilities denominated in USD and CHF.

In addition, intra-group subordinated liabilities amounting to € 4.9 BN (2014: € 5.9 BN) were attributable to subordinated bonds issued by Allianz Finance II B.V., an affiliated enterprise, that usually transfers the proceeds from these issues to Allianz SE via intra-group loans. In 2015 Allianz Finance II B.V. redeemed a subordinated bond with a volume of € 1.0 BN. Allianz SE provides a financial guarantee for the total amount of bonds issued by Allianz Finance II B.V.

1 Due to roundings of the single amounts for external and intra-group subordinated liabilities explained below, the 2015 amounts do not exactly sum up to the total value.


12 – Insurance reserves

€ mn

as of 31 DecemberUnearned premiums

Aggregate policy reserves

Reserves for loss and loss adjustment

expenses

Reserves for premium

refunds

Claims equalization and

similar reservesOther insurance

reserves Total

Fire and property reinsurance 429 – 1,952 – 418 8 2,807Motor 130 – 1,633 – 222 7 1,992Liability 192 – 2,776 – 348 4 3,320Life 50 1,676 97 – – 6 1,829Marine and aviation 34 – 596 – 39 1 670Credit and bond – – 407 21 397 2 827Personal accident 34 35 420 – 1 2 492Legal expenses 44 – 221 – 18 2 285Health 6 2 24 – – – 32Other lines 242 – 324 – 345 3 914Total 1,161 1,713 8,450 21 1,788 35 13,168

The development of the insurance reserves was mainly influenced by the new quota share with AGCS Munich.

aggrEgatE poliCy rESErvESAggregate policy reserves increased by € 56 MN to € 1,713 MN due to new business volume from new capital management transactions in Life/Health reinsurance.

rESErvES for loSS and loSS adjuStmEnt ExpEnSESReserves for loss and loss adjustment expenses increased by € 2,727 MN to € 8,450 MN, mainly driven by the growth of the portfolio.

ClaimS Equalization and Similar rESErvESIn 2015, claims equalization and similar reserves rose by € 193 MN to € 1,788 MN, mainly driven by the positive result and the significant premium growth. These increases resulted mainly from liability rein-surance (€ 120 MN) and other reinsurance lines (€ 119 MN). The overall upturn was partially offset by a release in fire reinsurance (€ 44 MN) driven by above-average claims.

13 – Other provisionsdEvElopmEnt of othEr proviSionS in thE fiSCal yEar

€ thou Provision Use

(-)

Release

(-)

1 Additions

(+)

1 Reversal of Discounting

(+)

Provision

1 January 2015 2015 2015 2015 31 December

Provisions for pensions and similar liabilities 5,080,670 253,823 – 688,989 791,027 6,306,863Tax provisions 475,566 243,804 71 179,237 – 410,928Miscellaneous

1. Anticipated losses 587,761 433,104 4,845 105,357 166,364 421,5332. Remaining provisions 510,665 374,567 29,742 251,087 3,449 360,892

Total 6,654,662 1,305,298 34,658 1,224,670 960,840 7,500,216

1 Including currency translation effects.

The total of other provisions grew by € 845 MN. This increase resulted mainly from a net allocation to the pension liability of € 1,226 MN1 as well as from a decrease in the miscellaneous provisions of € 316 MN.

1 Alongside the reversal of discounting the net allocation of the pension liability mainly arose from the addition of the provision for the agents pension fund to the full present value.




Provisions for anticipated losses decreased by € 166 MN. The con-tained provision for obligations to our subsidiary Fireman’s Fund Insurance Company amounting to € 258 MN was totally used, while the provision for derivatives increased by € 139 MN. The remaining provisions declined by € 150 MN. Tax provisions dropped by € 65 MN.

Allianz SE has made pension promises for which pension provi-sions are recognized. Part of these pension obligations are secured by a “Contractual Trust Arrangement” (Methusalem Trust e.V.). These trust assets constitute offsettable plan assets, with the asset value/market value being used as the fair value.

In 1985, the pension obligations of the German subsidiaries were centralized by transferring the corresponding assets to Allianz SE. As a result, Allianz SE has a joint liability for a large part of these old pen-sion promises. The German subsidiaries reimburse the costs, where-as Allianz SE has assumed responsibility for settlement. Consequently, these pension obligations are reported by Allianz SE.

In 2015, the cost allocation contract was renegotiated with the result that for future years Allianz SE, besides covering the interest cost, will also carry the interest rate risk. As a compensation for bear-ing the interest rate risk, the German subsidiaries paid a lump sum amounting to € 406 MN. Thereof € 321 MN are included for old pension promises given to employees and € 85 MN for the agents pension fund (“Vertreterversorgungswerk” – VVW). In addition to that, Allianz SE completely assumed the obligations resulting from the VVW from Allianz Beratungs- und Vertriebs-AG as of 1 January 2015. Further-more, part of the tied agents with a VVW entitlement in 2015 accepted the offer to waive their pension annuity in exchange for a lump-sum payment at retirement age. The factors for this conversion were fixed at the time of the offer and will not be changed in the future.

The following table shows a breakdown of pension liabilities:

SEttlEmEnt amount of thE offSEt liabilitiES

€ thouas of 31 December 2015 2014

Old pension promises of the German subsidiaries 1,885,919 5,112,067Pension promises of Allianz SE

Vertreterversorgungswerk 4,427,543 –old pension promises given to employees 201,115 183,209contribution based pension plans 162,443 144,160deferred compensation 74,879 66,596

Total 6,751,899 5,506,032

The settlement amount is calculated on the basis of the projected unit credit method and/or reported as the present value of the entitle-ments acquired. In case of security linked pension plans the fair value of the offset assets is shown.

Due to the fact that there exists no employment relationship between the tied agents and Allianz SE and as Allianz Beratungs- und Vertriebs-AG does no longer reimburse any costs, the pension obliga-tion resulting from the VVW equals the full present value.

aCtuarial paramEtErS

%as of 31 December 2015 2014

Applied discount rate1 3.89 4.50Rate of assumed pension trend 1.70 1.70Rate of assumed salary increase (incl. average career trend) 3.25 3.25

1 The discount rate was derived based on the up to 31 December 2015 effective German regulation on the discounting of provisions (“Rückstellungsabzinsungsverordnung”) as a 7-year-average.

As opposed to the above rates, part of the pension promises are cal-culated with the guaranteed interest rate of 2.75 % p. a. and the guar-anteed pension increase rate of 1 % p. a. of these pension promises.

The mortality tables used are the current RT2005G-tables of Heu-beck, which have been adjusted with respect to mortality, disability and labor turnover to reflect company -specific circumstances.

The retirement age applied is the contractual or legal retire-ment age.

SupplEmEntary information


Historical costs of the offset assets 443,067 424,149

Settlement amount of the offset liabilities 6,751,899 5,506,032(-) Fair value of the offset assets 445,036 425,362Provisions for pensions and similar liabilities 6,306,863 5,080,670

Allianz SE has obligations resulting from jubilee payments, a long-term credit account, birthday payments and phased-in early retire-ment, which are reported under remaining provisions.

These obligations are basically calculated in the same way as the pension obligations, using the same actuarial assumptions.

Offsettable plan assets are held at Methusalem Trust e.V. to secure the phased-in early retirement and long-term credit account obligations. The asset value/market value is used as the fair value.

The following table shows a breakdown of the offset assets and liabilities resulting from the phased-in early retirement and long-term credit account obligations.

information on thE offSEt aSSEtS and liabilitiES


Historical costs of the offset assets 14,168 8,327Settlement amount of the offset liabilities 15,115 9,452Fair value of the offset assets 14,311 8,620


14 – Maturity of financial liabilitiesThe residual terms of subordinated liabilities, issued bonds and miscellaneous liabilities are as follows:

maturity tablE aS of 31 dECEmbEr 2015

€ thou

TotalTerm up to

1 yearTerm

1 – 3 yearsTerm

3 – 5 yearsTerm

5 – 10 yearsTerm

> 10 years

Subordinated liabilities (B.)Intra-group transmission of proceeds from third-party financing 4,868,645 168,645 – – – 4,700,000Subordinated bonds issued by Allianz SE 7,471,098 90,730 – – – 7,380,368

Subtotal 12,339,743 259,375 – – – 12,080,368Bonds (intra-group – F.II.) 3,257,608 841,608 1,870,000 150,000 137,000 259,000Liabilities to banks (F.III.) 1,344,406 1,344,406 – – – –Miscellaneous liabilities (F.IV.)

Intra-group transmission of proceeds from third-party financing 4,831,235 438,665 500,000 1,375,000 1,500,000 1,017,570Other intra-group liabilities1 24,921,162 22,668,032 588,130 665,000 1,000,000 –

Subtotal intra-group miscellaneous liabilities 29,752,397 23,106,697 1,088,130 2,040,000 2,500,000 1,017,570Liabilities to third parties 1,663,288 1,663,288 – – – –Subtotal miscellaneous liabilities 31,415,685 24,769,985 1,088,130 2,040,000 2,500,000 1,017,570Total 48,357,442 27,215,374 2,958,130 2,190,000 2,637,000 13,356,938

1 As of 31 December 2015, other intra-group liabilities due within one year amounted to € 22.7 bn. Thereof, cash pool and intra-group loans accounted for € 8.3 bn and € 13.5 bn, respectively. Upon maturity, intra-group loans are rolled forward by Allianz Se on a regular basis.

maturity tablE aS of 31 dECEmbEr 2014

€ thou

TotalTerm up to

1 yearTerm

1 – 3 yearsTerm

3 – 5 yearsTerm

5 – 10 yearsTerm

> 10 years

Subordinated liabilities (B.)Intra-group transmission of proceeds from third-party financing 5,934,559 1,234,559 – – – 4,700,000Subordinated bonds issued by Allianz SE 5,806,505 64,240 – – – 5,742,265

Subtotal 11,741,064 1,298,799 – – – 10,442,265Bonds (intra-group – F.II.) 3,652,165 852,165 266,000 1,800,000 475,000 259,000Liabilities to banks (F.III.) 168 168 – – – –Miscellaneous liabilities (F.IV.)

Intra-group transmission of proceeds from third-party financing 4,759,576 290,743 127,400 1,875,000 1,500,000 966,433Other intra-group liabilities1 23,152,161 21,748,463 200,582 438,116 665,000 100,000

Subtotal intra-group miscellaneous liabilities 27,911,737 22,039,206 327,982 2,313,116 2,165,000 1,066,433Liabilities to third parties 1,667,886 1,667,886 – – – –Subtotal miscellaneous liabilities 29,579,623 23,707,092 327,982 2,313,116 2,165,000 1,066,433Total 44,973,020 25,858,224 593,982 4,113,116 2,640,000 11,767,698

1 As of 31 December 2014, other intra-group liabilities due within one year amounted to € 21.7 bn. Thereof, cash pool liabilities and intra-group loans accounted for € 10.2 bn and € 10.4 bn, respectively. Upon maturity, intra-group loans are rolled forward by Allianz Se on a regular basis.

As of 31 December 2015, € 0.5 BN (2014: € 0.5 BN) of the total financial liabilities were secured by assets pledged as collateral.




15 – Information about derivative financial instruments

optionS dEaling in SharES and SharE indiCES aS of 31 dECEmbEr 2015

Nominal Fair value Book value UnderlyingBalance sheet

positionClass € thou € thou € thou

Long call 8,155 759 877 Share index Assets D.III.Short call 8,155 (759) 877 Share index Liabilities F.IV.Short call 22,370 (20,804) 20,804 Allianz SE share Liabilities F.IV.Long put 198,371 395 4,483 Share index Assets D.III.Short put 198,371 (395) 4,483 Share index Liabilities F.IV.

forward ContraCtS in SharES, SharE indiCES and hEdgE rSu aS of 31 dECEmbEr 2015

Nominal Fair value Book value UnderlyingBalance sheet

positionClass € thou € thou € thou

Long forward 481,388 55,781 – Allianz SE share –Long forward 638,595 (78,937) – CPIC share –Long future 191,852 – – Allianz SE share –Short forward 638,595 78,937 – CPIC share –Hedge rSu 303,405 (496,701) 496,701 Allianz SE share Liabilities F.IV.

The positions in long forwards and futures on Allianz SE shares and in hedge RSU are held in the context of hedging the Allianz Equity Incentive Plans.

For the purpose of hedging the share price risk of CPIC shares, our subsidiary Allianz Finance II Louxembourg S.à.r.l. entered into short forwards on CPIC shares with Allianz SE. Allianz SE hedged these posi-tions by entering into countertrades at the market. Both intra-group and group-external positions were combined to form valuation units (“Bewertungseinheiten”) representing perfect micro hedges. The completely offsetting changes in value of the single positions are recorded neither in the income statement nor the balance sheet.

European-type options are valued using the Black Scholes model and American-type options using the binomial model based on the closing price on the valuation date. Yield curves are derived from the swap rates prevailing on the valuation date. The future dividend yield is estimated on the basis of market information on the valuation date. Volatility is calculated based on currently traded implicit vola-tility, taking into account the residual term and the ratio between the strike price and the prevailing share price.

The fair value of a forward contract is determined as the differ-ence between the underlying closing price on the valuation date and the discounted forward price. The net present value of dividend pay-ments due before maturity of the forward contract is also taken into account, unless the dividends are subject to a pass-through agree-ment. Liabilities from hedge RSU, which the Group companies acquire from Allianz SE in order to hedge their liabilities from the Group Equity Incentive programs, are valued on the basis of the Allianz closing price on the valuation date minus the net present value of estimated future dividends due before maturity of the respec-tive hedge RSU. Applicable discount rates are derived from inter-polated swap rates.

The options on Allianz SE shares are held in the context of hedging the Allianz Equity Incentive Plans.

The options on stock indices are held in the context of hedging activities of other entities of the Allianz Group. Allianz SE hedged intra-group positions by entering into countertrades at the market. Both intra-group and group-external positions were combined to valuation units (“Bewertungseinheiten”) representing perfect micro hedges. The completely offsetting changes in value of the single posi-tions are recorded neither in the income statement nor on the bal-ance sheet.


forward CurrEnCy ContraCtS aS of 31 dECEmbEr 2015

Nominal Fair value Book value Underlying Balance sheetClass € thou € thou € thou position

Long forward 7,985,749 (42,676) 62,329

AED, AUD, BRL, CAD, CHF, CNY, CZK, DKK, GBP, HKD, HUF, INR, JPY, MYR, NOK, NZD, PLN, QAR, SAR, SEK,

TRY, USD Liabilities D.

Short forward 9,491,656 (127,768) 198,720AED, AUD, CAD, CHF, CNY, CZK, DKK, GBP, HKD, INR, JPY, KRW, MYR, NOK, QAR, SAR, SGD, TRY, USD, ZAR Liabilities D.

Allianz SE holds long and short positions in various currencies in order to manage foreign exchange risk within Allianz SE and other entities of the Allianz Group.

The fair value of a forward currency contract is the difference between the discounted forward price and the spot rate in Euros. The discounted forward price is calculated by applying the Euro interest rate as a discount rate and the foreign currency interest rate as a compound interest rate.

Long forwards and short forwards with a nominal value of € 2.2 BN and a fair value of € 30.5 MN, respectively, were aggregated to form valuation units (“Bewertungseinheiten”) and accounted for with a book value of zero. In each case, diametrical positions with identical terms and conditions closed with intra-group and group-external counterparts, respectively, form a perfect micro hedge because the fair value changes of the diametric positions completely compensate each other.

Swap ContraCtS aS of 31 dECEmbEr 2015

Nominal Fair value Book value Underlying Balance sheetClass € thou € thou € thou position

Receiver swap Eur 1,500,000 (48,102) 48,102Long-term interst

rate positions Liabilities D.

Receiver swap gbp 312,055 56,853 56,853Long-term interst

rate positions Assets E.II.

Receiver swap Krw 58,882 958 –Long-term interst

rate positions –.

Allianz SE holds receiver swaps in various currencies in order to hedge interest rate risk arising from interest rate positions of Allianz SE or other entities of the Allianz Group.

The fair value of an interest rate swap is the aggregate net pres-ent value of all expected incoming and outgoing cash flows of the respective swap transaction.

Within the financial participations, there are put and call options on company shares which are linked to certain conditions. Due to the lack of quoted prices on active markets for these financial participa-tions and the uncertainty regarding the occurrence of the option conditions, it is not possible to reliably determine the fair value of such options. Wherever feasible, contractual arrangements including the option agreements were taken into account when determining the fair value of the financial participation. However, no stand-alone valuation of the options as derivative financial instruments was per-formed.




Supplementary InformatIon on the Income Statement

20 – Underwriting expenses (net)

€ thou2015 2014

Gross (2,296,970) (2,038,176)Ceded 232,006 403,552Net (2,064,964) (1,634,624)

The rise in underwriting expenses (net) was mainly due to the new quota share agreement with AGCS Munich. In addition, lower internal and external retrocessions led to an decrease of commissions received.

16 – Gross premiums written

€ thou2015 2014

Property-Casualty reinsurance 7,769,191 6,583,698Life/Health reinsurance 558,832 500,382Total 8,328,023 7,084,080

Gross premiums written increased by 17.6 % to € 8,328 MN. The new quota share with AGCS Munich was the main driver behind this.

17 – Allocated interest return (net)The amount of interest income transferred under this heading from the non-technical section to the technical section was calculated in accordance with § 38 RechVersV and increased by € 3 MN to € 59 MN.

18 – Run-off resultIn 2015, the positive run-off result in Property-Casualty amounted to € 324 MN (2014: € 90 MN) and was mainly influenced by the develop-ment of liability reinsurance (€ 112 MN), engineering reinsurance (€ 77 MN), credit and bond reinsurance (€ 55 MN), and marine and aviation reinsurance (€ 38 MN).

19 – Change in other insurance reserves (net)

€ thou2015 2014

Change in aggregate policy reserves (net) (41,473) (49,450)Other insurance reserves (net) 2,644 1,424Total (38,829) (48,026)

The change in aggregate policy reserves (net) was driven by increased business volume from new capital management transactions in Life/Health reinsurance.

The other insurance reserves (net) include mostly reserves for motor reinsurance.

21 – Investment income

€ thou2015 2014

a) Income from affiliated enterprises and participations thereof from affiliated enterprises: € 3,794,403 thou (2014: € 3,120,834 thou) 3,820,340 3,132,083

b) Income from other investments thereof from affiliated enterprises: € 445,516 thou (2014: € 393,843 thou)ba) Income from real estate, real estate rights

and buildings including buildings on land not owned by Allianz SE 27,474 27,105

bb) Income from other investments (see below) 917,092 868,553c) Income from reversal of impairments 3,020 141,112d) Realized gains 360,899 157,569e) Income from profit transfer agreements 3,001,333 2,090,673Total 8,130,158 6,417,095

2015 2014

bb) Income from other investmentsLoans to affiliated enterprises 413,731 358,813Debt securities 368,402 373,591Funds held by others under reinsurance business assumed 87,145 85,577Interests in funds 24,622 17,333Loans to third parties 12,708 20,441Receivables from intra-group cash pooling 5,183 6,541Bank deposits 4,643 6,165Other 658 92

Total 917,092 868,553


23 – Other non-technical result

€ thou2015 2014

Other income Gains on derivatives 1,157,962 608,444Currency gains 730,466 154,222Income due to adjustment of cost allocation contract 406,050 –Other service revenues to group companies 106,487 90,604Intercompany income 38,005 38,738Income from the release of other provisions 33,572 126,509Service revenues from pensions charged to group companies 29,551 766,339Other 5,484 401Total other income 2,507,577 1,785,257

Other expensesCurrency losses (1,306,285) (818,587)Expenses on derivatives (1,267,327) (513,507)Interest and similar expense (969,557) (535,493)Expenses due to to adjustment of cost allocation contract (634,166) –Other human-related expenses (295,946) (270,115)Anticipated losses on derivatives (283,612) (170,244)Pension expenses (119,959) (39,967)Other service expenses to group companies (106,487) (90,604)Service expenses from pensions charged to group companies (29,551) (766,339)Expenses for financial guarantees – (48,321)Other (276,786) (228,340)Total other expenses (5,289,676) (3,481,517)Other non-technical Result (2,782,099) (1,696,260)

Allianz SE has a joint liability for a large part of the pension provisions of its German subsidiaries (see note 13 for more details). Costs incurred in this context are recognized as service expenses from pension plans charged to group companies, as they are reimbursed by the German subsidiaries according to the cost allocation contract and resulting in corresponding service revenues.

22 – Investment expenses

€ thou2015 2014

a) Expenses for the management of investments, interest and other investment-related expensesaa) Interest expenses (see below) (1,045,224) (1,134,294)ab) Other (76,699) (81,775)

b) Depreciation and impairments of investments (594,135) (229,620)c) Realized losses (183,763) (90,612)d) Expenses from losses taken over (221,493) (274,581)Total (2,121,314) (1,810,882)

2015 2014

aa) Interest expensesSubordinated bonds issued by Allianz SE (299,544) (229,967)Liabilities from intra-group loans (298,906) (313,255)Intra-group subordinated liabilities (intra-group transmission of proceeds from third-party financing) (269,591) (336,777)Liabilities from intra-group bonds (126,320) (185,717)Liabilities from intra-group cash pooling (40,653) (59,417)Liabilities from commercial paper issues (5,573) (3,302)Liabilities to banks – (27)Other (4,637) (5,832)

Total (1,045,224) (1,134,294)

The depreciation and impairments of investments include unsched-uled write-downs of € 360 MN (2014:€ 165 MN) on holdings in affiliated enterprises and € 1 MN (2014: € 1 MN) on real estate.




The significant decline of € 737 MN in service revenues and expenses charged to group companies is due to the fact that the whole outstanding conversion expense resulting from the applica-tion of the German Accounting Law Modernization Act (BilMoG) amounting to € 692 MN had been recognized in the previous year, as well as due to a change of the cost allocation contract in the fiscal year. The renegotiated cost allocation contract also led to an income of € 406 MN. This was offset by an expense of € 634 MN, which resulted from the increase in the pension obligation for the agents pension fund (“VVW”) to the full present value.

The increase in interest expenses of € 434 MN was predominantly caused by a higher addition of the pension provision of € 288 MN due to a lower discount rate.

The significant increase in pension expenses is basically due to the fact that after Allianz SE had taken over the obligations resulting from VVW, part of the tied agents accepted the offer to waive their pension annuity in exchange for a lump sum payment at retirement age.

Furthermore, the items other income and other expenses include the following offset income and expenses:

€ thou2015

Pensions and similar

obligationsOther

obligations

Actual return of the offset assets 15,445 172Imputed interest cost for the settlement amount of the offset liabilities (266,828) (263)Effect resulting from the change in the discount rate for the settlement amount (539,644) (21)Net amount of the offset income and expenses (791,027) (112)

FEES to thE auditor

€ thou2015 2014

Audit (3,564) (3,426)Other certification and valuation services (3,933) (3,552)Tax advice services (75) (1,111)Other services (377) (65)Total (7,949) (8,154)

24 – Income taxesIn 2015 the tax income, which mostly relates to the net operating income, increased to € 358 MN (2014: € 177 MN).

As the controlling company (“Organträger”) of the tax group, Allianz SE files a consolidated tax return with most of its German affiliated enterprises. As long as the corporate income tax loss carried forward is not fully utilized, the tax compensation payments as of € 664 MN (2014: € 512 MN) received from members of the tax group result presumably in a tax income.

When calculating deferred taxes the company nets deferred tax assets and liabilities.

Based on the capitalization option of § 274 (1) sentence 2 of the German Commercial Code, the surplus of deferred tax assets over deferred tax liabilities is not recognized. The main differences between accounting and tax-based valuation arise from the balance sheet items reserves for loss and loss adjustment expenses, provisions for anticipated losses and pension accruals resulting in deferred tax assets.

In addition, the existing corporate tax loss increases the surplus of deferred tax assets.

The valuation of the domestic deferred taxes is based on the following tax rates:

− 31.0 % differences in balance sheet items, − 15.8 % corporate tax losses, − 15.2 % trade tax losses.

25 – Net earnings

€ thou2015 2014

Net income 3,553,633 3,123,066Unappropriated earnings carried forward 674,993 663,680Net earnings 4,228,626 3,786,746


Other InfOrmatIOn

Contingent liabilities and legal proceedings

ContingEnt liabilitiES

Guarantees relating to Allianz Group companiesThe guarantees described below are provided by Allianz SE to Allianz Group companies as well as to third parties in respect of the liabilities of certain Allianz Group companies:

− Bonds issued by Allianz Finance II B.V. and Allianz Finance III B.V. for € 11.9 BN, of which € 4.7 BN were on a subordinated basis.

− Commercial Papers issued by Allianz Finance Corporation. As of 31 December 2015, USD 0.2 BN of commercial papers were issued as part of the program.

− Letters of Credit issued to various Allianz Group companies amounting to € 0.6 BN.

The guarantees are related to the occurrence of possible future events that could lead to an obligation. As of today, and to the best of our knowledge, we assess the probability of a loss resulting from out-standing guarantees to be extremely remote.

Guarantee declarations totaling € 1.4 BN have also been made for life policies signed by Allianz Companía de Seguros y Reaseguros S.A.

Allianz SE provides a € 1.0 BN guarantee for the obligations of Allianz Vie S.A. under a unit-linked pension insurance contract.

Contingent liabilities exist because of indirect pension promises organized via pension funds ( Allianz Versorgungs kasse VVaG) and support funds ( Allianz Pensionsverein e.V.). Allianz SE has a joint liability of € 389 MN for a part of the German pension promises and plan assets for phased-in early retirement obligations of its German subsidiaries.

In connection with the transfer of a promissory note of AFF Financing Limited, Allianz SE provided a guarantee to Allianz Lebens-versicherungs-AG of up to € 80 MN.

Allianz SE provides a guarantee to Allianz Argos 14 GmbH to secure payment obligations under derivative contracts entered into with Blue Danube II Ltd. in connection with the issuance of catastrophe bonds.

There are financial commitments in connection with the promise of compensation to holders of rights under stock option programs of Allianz France S.A.

In connection with the sale of holdings in individual cases, guar-antees were given covering counterparty exposures or the various bases used to determine purchase prices.

Allianz SE has also provided several subsidiaries and associates with either a standard indemnity guarantee or such guarantees as required by the supervisory authorities, which cannot be quantified. These include, in particular, a deed of general release as against the Federal Association of German Banks (“Bundesverband deutscher Banken e. V.”) for Oldenburgische Landesbank AG and Münster-ländische Bank Thie & Co. KG, in accordance with § 5 (10) of the Statute of Deposit Security Arrangement Fund.

In addition, Allianz SE issued guarantees to various Allianz Group companies totaling € 515 MN.

Other guarantees to third partiesA contingent indemnity agreement was entered into with respect to securities issued by HT1 Funding GmbH in case HT1 Funding GmbH cannot serve the agreed coupon of the bond in part or in total. Allianz SE expects not to be obliged to make a payment in the foresee-able future, however, it is not possible for Allianz SE to predict the ultimate potential payment obligations at this point in time.

As of 31 December 2015, other guarantee commitments given by Allianz SE amounted to € 23 MN. As of today and to the best of our knowledge, we assess the probability of a loss resulting from other guarantees to be extremely remote.




Legal obligationsLegal obligations to assume any losses arise on account of manage-ment control agreements and/or transfer-of-profit agreements with the following companies:

− Allianz Argos 14 GmbH, − Allianz Asset Management AG, − Allianz Capital Partners GmbH, − Allianz Deutschland AG, − Allianz Finanzbeteiligungs GmbH, − Allianz Global Corporate & Specialty SE, − Allianz Investment Management SE, − Allianz Managed Operations & Services SE, − Allianz Real Estate GmbH, − AZ-Arges Vermögensverwaltungsgesellschaft mbH, − IDS GmbH-Analysis and Reporting Services.

Advertising agreements led to financial liabilities of € 89 MN.Security deposits for rental contracts amounted to € 0.1 MN in

financial commitments.

litigation Allianz SE is involved in legal, regulatory, and arbitration proceed-ings. Such proceedings arise in the ordinary course of business, including, amongst others, Allianz SE’s activities as a reinsurance company, employer, investor and taxpayer. It is not feasible to predict or determine the ultimate outcome of the pending or threatened pro-ceedings. Management does not believe that the outcome of these proceedings, including the one discussed below, will have a material adverse effect on the financial position and the results of Allianz SE, after consideration of any applicable reserves.

On 24 May 2002, pursuant to a statutory squeeze-out procedure, the general meeting of Dresdner Bank AG resolved to transfer shares from its minority shareholders to Allianz as the principal share-holder, in return for payment of a cash settlement amounting to € 51.50 per share. Allianz established the amount of the cash settle-ment on the basis of an expert opinion and its adequacy was con-firmed by a court-appointed auditor. Some of the former minority shareholders applied for a court review of the appropriate amount of the cash settlement in a mediation procedure (“Spruchverfahren”). In September 2013 the district court (“Landgericht”) of Frankfurt dis-missed the minority shareholders’ claims in their entirety. This deci-sion has been appealed to the higher regional court (“Oberlandes-gericht”) of Frankfurt. In the event that a final decision were to determine a higher amount as an appropriate cash settlement, this would affect all of the approximately 16 MN shares that were trans-ferred to Allianz.

Board MembersAll supervisory board members, current or having resigned during the year, and all board members, current or having resigned during the year, are denoted on pages 12 to 14. Their memberships in supervisory boards or similar committees of other enterprises are mentioned on pages 95 and 96. These pages are part of the Notes to the Financial Statements.

Board of Management remuneration1As of 31 December 2015, the Board of Management was comprised of nine members. The following expenses reflect the full Board of Man-agement active in the respective year.

The remuneration of the Board of Management includes fixed and variable components.

The variable remuneration consists of the annual bonus (short-term), the mid-term bonus (MTB) and the equity-related remunera-tion (long-term). In 2015 the equity-related remuneration was com-prised of 84,0882 (2014: 77,1583) Restricted Stock Units (RSU).

board of managEmEnt rEmunEration

€ thou2015 2014

Base salary (8,004) (8,405)Annual bonus (9,725) (10,175)Perquisites (341) (353)Base salary, annual bonus and perquisites total (18,070) (18,933)Fair value of rSu at grant date (9,725) (10,248)Equity-related remuneration (9,725) (10,248)Total (27,795) (29,181)

Total remuneration of the Board of Management of Allianz SE for 2015 (including the MTB 2013 – 2015 payout) amounted to € 56,970 THoU (2014, excluding the relevant MTB 2013 – 2015 tranche: € 29,181 THoU).

Equity-rElatEd rEmunErationThe remuneration system as of 1 January 2010 only awards RSU. For 2015 the fair value of the RSU at the date of grant was € 9,725 THoU (2014: € 10,248 THoU).

1 For detailed information regarding the Board of Management Remuneration, please refer to the Remu-neration Report starting on page 47.

2 The relevant share price to determine the final number of rSU granted is only available after the sign-off by the external auditors, thus numbers are based on a best estimate.

3 The disclosure in the Annual Report 2014 was based on a best estimate of the rSU grants. The figure shown here for 2014 now includes the actual fair value as of the grant date (12 March 2015). The value therefore differs from the value disclosed last year. The value is significantly lower since Gary Bhojwani and Clem Booth are not disclosed in the 2015 report.


bEnEfitS to rEtirEd mEmbErS of thE board of managEmEntIn 2015, remuneration and other benefits of € 7 MN (2014: € 5 MN) were paid to retired members of the Board of Management and surviving dependents.

The pension obligations for former members of the Board of Management and their surviving dependents are as follows:


Historical costs of the offset assets 87,493 69,480Fair value of the offset assets 87,493 69,480Settlement amount of the offset liabilities 97,975 78,575Pension provisions 10,482 9,095

The asset value of the pension plan reinsurance contracts is taken as a basis for the fair value of the offset assets.

Supervisory Board remuneration1

2015 2014

€ thou % € thou %

Fixed remuneration (1,400) 69.3 (1,408) 69.2Committee-related remuneration (560) 27.7 (563) 27.7Attendance fees (61) 3.0 (64) 3.1Total (2,021) 100.0 (2,035) 100.0

1 For detailed information regarding the Supervisory Board Remuneration please refer to the Remuneration of the Supervisory Board starting on page 58.

Average number of employeesExcluding members of the Board of Management, trainees, interns, employees in the passive phase of early retirement and employees on maternity leave or undergoing basic military training/community service.

2015 2014

Full-time staff 1,359 1,427Part-time staff 224 189Total 1,583 1,616

Staff expensesIncluding members of the Board of Management, trainees, interns, employees in the passive phase of early retirement and employees on maternity leave or undergoing basic military training/community service.

€ thou2015 2014

1. Wages and salaries (326,549) (307,859)2. Statutory welfare contributions and expenses

for optional support payments (20,816) (21,544)3. Expenses for pensions and other post-retirement

benefits (21,889) (16,573)Total expenses (369,254) (345,976)




Mandates of the Members of the Supervisory Board

dr. hElmut PErlEtChairmanFormer Member of the Board of Management of Allianz SEMembership in other statutory supervisory boardsand SE administrative boards in GermanyCommerzbank AGGEA Group AG

dr. Wulf h. bErnotatVice ChairmanFormer Chairman of the Board of Management of E.ON AG Membership in other statutory supervisory boardsand SE administrative boards in GermanyBertelsmann Management SEBertelsmann SE & Co. KGaAVonovia SE (Chairman), formerly named Deutsche Annington Immobilien SEDeutsche Telekom AG METRO AGuntil 4 September 2015

rolf ZimmErmannVice Chairman Chairman of the (European) SE Works Council of Allianz SE

dantE barbanEmployee of Allianz S.p.A.

ChriStinE boSSEFormer Chief Executive Officer of Tryg A/SMembership in comparable1 supervisory bodiesAker ASA until 9 April 2015P/F BankNordik (Chairwoman)since 25 March 2015TDC A/S

gabriElE burKhardt-bErgChairwoman of the Group Works Council of Allianz SE

JEan-JaCquES CEttEChairman of the Group Works Council of Allianz France S.A.Membership in comparable1 supervisory bodiesMembership in Group bodies Allianz France S.A.

ira gloE-SEmlErRegional Representative Financial Services of ver.di Hamburg

franZ hEiSSuntil 31 July 2015Employee of Allianz Beratungs- und Vertriebs-AG

Prof. dr. rEnatE KöChErHead of “Institut für Demoskopie Allensbach” (Allensbach Institute)Membership in other statutory supervisory boardsand SE administrative boards in GermanyBMW AG Infineon Technologies AGNestlé Deutschland AGRobert Bosch GmbH

JürgEn laWrEnZsince 1 August 2015 Employee of Allianz Managed Operations & Services SEMembership in other statutory supervisory boards and SE administrative boards in GermanyMembership in Group bodiesAllianz Managed Operations & Services SE

Jim hagEmann SnabEChairman of World Economic Forum USAMembership in other statutory supervisory boards and SE administrative boards in GermanySAP SESiemens AGMembership in comparable1 supervisory bodiesBang & Olufsen A/S (Vice Chairman)Danske Bank A/S

PEtEr dEniS SuthErland Former Chairman of the Board of Directors of Goldman Sachs International Membership in comparable1 supervisory bodiesBW Group Ltd. Goldman Sachs International (Chairman)until 30 June 2015Koç Holding A.Ş.

1 We regard memberships in other supervisory bodies as “comparable” if the company is listed on a stock exchange or has more than 500 employees.


Mandates of the Members of the Board of Management

olivEr bätEChairman of the Board of Managementsince 7 May 2015 Global Property-Casualtyuntil 6 May 2015 Membership in other statutory supervisory boardsand SE administrative boards in GermanyMembership in Group bodiesAllianz Deutschland AGsince 17 March 2015Membership in comparable1 supervisory bodiesMembership in Group bodies Allianz France S.A. (Vice Chairman since 7 May 2015) Allianz S.p.A. (Vice Chairman until 6 February 2015)

miChaEl diEKmannuntil 6 May 2015 Chairman of the Board of Management Membership in other statutory supervisory boards and SE administrative boards in GermanyBASF SE (Vice Chairman) Linde AG (Vice Chairman) Siemens AGMembership in Group bodies Allianz Asset Management AG (Chairman) until 23 February 2015 Allianz Deutschland AGuntil 16 March 2015Membership in comparable1 supervisory bodiesMembership in Group bodies Allianz France S.A. (Vice Chairman) Allianz S.p.A.

SErgio balbinotInsurance Western & Southern EuropeInsurance Middle East, Africa, Indiasince 1 September 2015Membership in comparable1 supervisory bodiesMembership in Group bodiesAllianz France S.A.Allianz S.p.A. (Vice Chairman since 7 February 2015)Allianz Sigorta A.S. (Vice Chairman)Allianz Yasam ve Emeklilik A.S.

manuEl bauEruntil 31 August 2015Insurance Growth Markets Membership in comparable1 supervisory bodiesBajaj Allianz General Insurance Co. Ltd.Bajaj Allianz Life Insurance Co. Ltd.Membership in Group bodies Allianz Hungária Biztosító Zrt. (Chairman) Allianz Tiriac Asigurari S.A. (Chairman)

dr. hElga JungInsurance Iberia & Latin America, Legal & Compliance, Mergers & Acquisitions Membership in other statutory supervisory boardsand SE administrative boards in GermanyMembership in Group bodies Allianz Asset Management AG (Chairwoman)since 23 February 2015 Allianz Global Corporate & Specialty SE (Vice Chairwoman)Membership in comparable1 supervisory bodiesUnicredit S.p.A.Membership in Group bodies Allianz Compañía de Seguros y Reaseguros S.A.Companhia de Seguros Allianz Portugal S.A.

dr. ChriStof maSChEr Operations, Allianz Worldwide PartnersMembership in other statutory supervisory boardsand SE administrative boards in GermanyVolkswagen Autoversicherung AGMembership in Group bodies Allianz Managed Operations and Services SE (Chairman)Membership in comparable1 supervisory bodiesMembership in Group bodies Allianz Worldwide Partners SAS (Chairman until 1 December 2015)

Jay ralPh Asset Management, US Life InsuranceMembership in comparable1 supervisory bodiesMembership in Group bodiesAllianz Life Insurance Company of North America (Chairman)

dr. axEl thEiSGlobal Insurance Lines & Anglo MarketsGlobal Property-Casualtysince 7 May 2015Membership in other statutory supervisory boardsand SE administrative boards in GermanyProCurand GmbH & KGaA (Chairman) Membership in Group bodiesAllianz Global Corporate & Specialty SE (Chairman)Membership in comparable1 supervisory bodiesMembership in Group bodies Allianz Australia Ltd.since 1 September 2015Allianz Insurance plc (Chairman)Allianz Irish Life Holdings plcsince 20 March 2015Euler Hermes S.A.since 1 June 2015

dr. diEtEr WEmmErFinance, Controlling, Risk Membership in other statutory supervisory boardsand SE administrative boards in GermanyMembership in Group bodies Allianz Asset Management AG Allianz Investment Management SE

dr. WErnEr ZEdEliuSInsurance German Speaking CountriesInsurance Central & Eastern Europesince 1 September 2015 Membership in other statutory supervisory boardsand SE administrative boards in Germany FC Bayern München AG (Vice Chairman)since 18 May 2015Membership in Group bodies Allianz Deutschland AG (Chairman) Allianz Investment Management SEMembership in comparable1 supervisory bodies Membership in Group bodies Allianz Elementar Lebensversicherungs-AG (Chairman) Allianz Elementar Versicherungs-AG (Chairman) Allianz Investmentbank AG (Vice Chairman) Allianz Suisse Lebensversicherungs-Gesellschaft AG (Vice Chairman) Allianz Suisse Versicherungs-Gesellschaft AG (Vice Chairman)

dr. maximilian ZimmErErInvestments, Global Life/HealthInsurance Asia Pacificsince 1 September 2015Membership in other statutory supervisory boardsand SE administrative boards in Germany Membership in Group bodies Allianz Asset Management AG Allianz Investment Management SE (Chairman) Allianz Lebensversicherungs-AG (Vice Chairman)

1 We regard memberships in other supervisory bodies as “comparable” if the company is listed on a stock exchange or has more than 500 employees.




Notifications pursuant to § 21 (1) WpHG The company has received the following notifications pursuant to § 21 (1) WpHG:

Company Name Location

+ = exceeds

– = falls below

Thres-hold Date

Proportion of voting

rights

Amount of voting

rights Attribution pursuant to § 22 WpHG % %

BlackRock, Inc.1 Wilmington, DE, USA

5 26 November 2015 6.28 28,703,339 28,703,339 voting rights2

BR Jersey International Holdings L.P.

St. Helier, Jersey, Channel Islands

+ 3 27 August 2015 3.02 13,804,458 9,156,677 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,228,026 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG

BlackRock International Holdings, Inc.

Wilmington, DE, USA

+ 3 27 August 2015 3.02 13,804,458 9,156,677 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,228,026 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG



– 3 30 July 2015 2.99 13,647,910 8,940,956 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,340,963 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


Wilmington, DE, USA




+ 3 15 July 2015 3.0001 13,710,406 8,997,058 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,376,673 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


Wilmington, DE, USA






Wilmington, DE, USA






Wilmington, DE, USA


BlackRock, Inc. Wilmington, DE, USA

+ 5 11 May 2015 5.49 25,070,153 12,243,632 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 14,124,041 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG

BlackRock Holdco 2, Inc.

Wilmington, DE, USA


BlackRock Financial Management, Inc.

Wilmington, DE, USA

+ 5 11 May 2015 5.39 24,609,930 12,243,632 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 124,594 voting rights pursuant to § 22 (1) sentence 1 No. 6 WpHG 13,544,238 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG



+ = exceeds

– = falls below

Thres-hold Date


rights

Amount of voting


BlackRock Holdco 4, LLC.

Wilmington, DE, USA



Wilmington, DE, USA


BlackRock Delaware Holdings, Inc.

Wilmington, DE, USA


BlackRock, Inc. Wilmington, DE, USA

– 5 5 May 2015 4.81 22,001,344 10,950,731 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,830 voting rights pursuant to § 22 (1) sentence 1 No. 2 in connection with sentence 2 WpHG 11,940,629 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG

BlackRock Holdco 2, Inc.

Wilmington, DE, USA

– 5 5 May 2015 4.71 21,539,805 10,950,731 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,830 voting rights pursuant to § 22 (1) sentence 1 No. 2 in connection with sentence 2 WpHG 11,479,090 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG

BlackRock Financial Management, Inc.

Wilmington, DE, USA

– 5 5 May 2015 4.71 21,539,805 10,950,731 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,830 voting rights pursuant to § 22 (1) sentence 1 No. 2 in connection with sentence 2 WpHG 124 816 voting rights pursuant to § 22 (1) sentence 1 No. 6 WpHG 11 359 181 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


Wilmington, DE, USA

– 3 30 April 2015 2.88 13,148,472 3,407,563 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 9,740,909 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


Wilmington, DE, USA



Wilmington, DE, USA



Wilmington, DE, USA






Wilmington, DE, USA

+ 3 7 April 2015 3.03 13,837,358 4,285,274 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 9,552,084 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


Wilmington, DE, USA






+ = exceeds

– = falls below

Thres-hold Date


rights

Amount of voting



Wilmington, DE, USA



Wilmington, DE, USA



Wilmington, DE, USA



Wilmington, DE, USA



Wilmington, DE, USA

+ 3 31 March 2015 3.003 13,723,714 4,335,666 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 9,388,048 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


Wilmington, DE, USA



Wilmington, DE, USA


BlackRock Group Limited

London, U.K. – 3 23 February 2015 2.95 13,466,303 9,220,226 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 5,884,817 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


London, U.K. + 3 4 February 2015 3.01 13,765,976 9,129,235 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,426,847 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


London, U.K. – 3 30 January 2015 2.99 13,666,716 9,041,503 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,415,862 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG


London, U.K. + 3 28 January 2015 3.004 13,727,552 9,110,871 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG 6,458,634 voting rights pursuant to § 22 (1) sentence 1 No. 6 in connection with sentence 2 WpHG

UBS AG Zurich, Switzerland – 3 14 May 2015 2.66 12,142,584 3,135,767 voting rights pursuant to § 22 (1) sentence 1 No. 1. WpHG

UBS Group AG Zurich, Switzerland – 3 14 May 2015 2.66 12,142,584 § 22 (1) sentence 1 No. 1. WpHGUBS AG Zurich, Switzerland + 3 11 May 2015 3.04 13,907,323 3,039,360 voting rights pursuant to

§ 22 (1) sentence 1 No. 1. WpHGUBS Group AG Zurich, Switzerland + 3 11 May 2015 3.04 13,907,323 § 22 (1) sentence 1 No. 1. WpHGHarris Associates L.P. Chicago, USA – 3 29 October 2015 2.99 13,660,097 § 22 (1) sentence 1 No. 6 WpHG Harris Associates L.P. Chicago, USA + 3 12 May 2015 3.05 13,937,437 § 22 (1) sentence 1 No. 6 WpHG

1 Statements of holdings pursuant to § 41 (4f) WpHG.2 The new German law implementing the revised e.U. Transparency Directive does not require anymore

the breakdown of the attribution pursuant to § 22 WpHG in the notifications of major shareholders. It is only required to state if the units are attributed or held directly.


Declaration of Conformity with the German Corporate Governance CodeOn 10 December 2015, the Board of Management and the Super- visory Board of Allianz SE issued the Declaration of Conformity with the German Corporate Governance Code required by § 161 AktG and made it permanently available on the company’s website at

www.allianz.com/corporate-governance.

Munich, 16 February 2016 Allianz SEThe Board of Management





List of ParticiPations of aLLianz sE, Munich as of 31 DEcEMbEr 2015 accorDing to § 285 no. 11 hgb in conjunction with § 286 (3) no. 1 hgb

ownEd 1 Equity

nEt incomE

(loSS)

% € thou € thou

GErman EntitiESAffiliatesACP Vermögensverwaltung GmbH & Co. KG Nr. 4, Munich 100.0 9,225 65ACP Vermögensverwaltung GmbH & Co. KG Nr. 4a, Munich 100.0 5,781 14ACP Vermögensverwaltung GmbH & Co. KG Nr. 4c, Munich 100.0 13,842 8,882ACP Vermögensverwaltung GmbH & Co. KG Nr. 4d, Munich 100.0 30,890 29,774ADEUS Aktienregister-Service-GmbH, Munich 79.6 7,790 157Alida Grundstücksgesellschaft mbH & Co. KG, Hamburg 94.8 414,041 10,612Allianz Asset Management AG, Munich 100.0 2 3,461,258 – Allianz AZL Vermögensverwaltung GmbH & Co. KG, Munich 100.0 409,280 (61)Allianz Beratungs- und Vertriebs-AG, Munich 100.0 2 9,484 (1,778)Allianz Capital Partners Verwaltungs GmbH, Munich 100.0 325,704 2,239Allianz Deutschland AG, Munich 100.0 2 8,533,087 – Allianz Finanzbeteiligungs GmbH, Munich 100.0 2 863,178 – Allianz Global Corporate & Specialty SE, Munich 100.0 3,2 1,144,236 – Allianz Global Investors GmbH, Frankfurt am Main 100.0 2 396,475 – Allianz Handwerker Services GmbH, Aschheim 100.0 3 31,687 6,194Allianz Investment Management SE, Munich 100.0 2 5,882 – Allianz Leben Direkt Infrastruktur GmbH, Munich 100.0 101,486 (132)Allianz Leben Private Equity Fonds 1998 GmbH, Munich 100.0 2 192,364 – Allianz Leben Private Equity Fonds 2001 GmbH, Munich 100.0 2 1,697,235 – Allianz Leben Private Equity Fonds 2008 GmbH, Munich 100.0 2 40,321 – Allianz Leben Private Equity Fonds Plus GmbH, Munich 100.0 3,2 14,335 – Allianz Lebensversicherungs-Aktiengesellschaft, Stuttgart 100.0 2 1,598,344 79,000Allianz Managed Operations & Services SE, Munich 100.0 3,2 189,608 – Allianz of Asia-Pacific and Africa GmbH, Munich 100.0 81,663 1Allianz Pension Direkt Infrastruktur GmbH, Munich 100.0 5,015 (20)Allianz Pensionsfonds Aktiengesellschaft, Stuttgart 100.0 52,184 1,405Allianz Pensionskasse Aktiengesellschaft, Stuttgart 100.0 244,482 2,788Allianz Private Equity GmbH, Munich 100.0 2 128,375 – Allianz Private Krankenversicherungs-Aktiengesellschaft, Munich 100.0 2 387,731 – Allianz Renewable Energy Subholding GmbH & Co. KG, Sehestedt 100.0 3 27,340 (13)Allianz Taunusanlage GbR, Stuttgart 99.5 181,320 5,792Allianz Versicherungs-Aktiengesellschaft, Munich 100.0 2 1,526,474 (39,496)AllSecur Deutschland AG, Munich 100.0 2 44,831 – APKV Direkt Infrastruktur GmbH, Munich 100.0 14,641 (31)APKV Private Equity Fonds GmbH, Munich 100.0 2 236,026 – AUG. PRIEN Immobilien PE Verwaltung BrahmsQuartier GmbH, Stuttgart 94.9 6,508 113AZ-Arges Vermögensverwaltungsgesellschaft mbH, Munich 100.0 2 2,464,583 – AZ-Argos 44 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 129,876 1,172AZ-Argos 50 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 133,706 27,753AZ-Argos 51 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 228,543 48,966AZ-Argos 57 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 35,607 (23)AZ-Argos 61 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 39,661 9AZ-Argos 64 Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 23,633 2,273AZ-GARI Vermögensverwaltungsgesellschaft mbH & Co. KG, Munich 100.0 162,778 31,002

ownEd 1 Equity

nEt incomE

(loSS)

% € thou € thou

AZL AI Nr. 1 GmbH, Munich 100.0 2 17,314 – AZL PE Nr. 1 GmbH, Munich 100.0 19,507 398AZ-SGD Direkt Infrastruktur GmbH, Munich 100.0 12,244 (28)AZ-SGD Private Equity Fonds 2 GmbH, Munich 100.0 2 79,038 – AZ-SGD Private Equity Fonds GmbH, Munich 100.0 2 359,890 – Brahms Beteiligungs GmbH & Co. KG, Stuttgart 94.9 6,138 125BrahmsQ Objekt GmbH & Co. KG, Stuttgart 95.0 88,507 2,647Bürgel Wirtschaftsinformationen GmbH & Co. KG, Hamburg 50.1 3 21,708 3,636Deutsche Lebensversicherungs-Aktiengesellschaft, Berlin 100.0 2 44,991 – Euler Hermes Aktiengesellschaft, Hamburg 100.0 3 89,540 23,086manroland AG, Offenbach am Main 100.0 4,5 148,289 (179,129)manroland Vertrieb und Service GmbH, Mühlheim am Main 100.0 4,5 5,155 – Münchener und Magdeburger Agrarversicherung Aktiengesellschaft, Munich 100.0 3,2 7,606 19Objekt Burchardplatz GmbH & Co. KG, Stuttgart 100.0 93,507 1,894Oldenburgische Landesbank Aktiengesellschaft, Oldenburg 90.2 3 606,446 19,964PIMCO Deutschland GmbH, Munich 100.0 2 35,030 – REC Frankfurt Objekt GmbH & Co. KG, Hamburg 80.0 318,121 10,382Signa 12 Verwaltungs GmbH, Düsseldorf 94.9 4,372 108Spherion Beteiligungs GmbH & Co. KG, Stuttgart 94.9 4,270 24Spherion Objekt GmbH & Co. KG, Stuttgart 100.0 79,354 2,647Volkswagen Autoversicherung AG, Braunschweig 100.0 104,017 – Volkswagen Autoversicherung Holding GmbH, Braunschweig 49.0 109,290 (31,498)Windpark Aller-Leine-Tal GmbH & Co. KG, Sehestedt 100.0 3 27,042 945Windpark Berge-Kleeste GmbH & Co. KG, Sehestedt 100.0 3 13,444 1,379Windpark Büttel GmbH & Co. KG, Sehestedt 100.0 3 29,040 2,833Windpark Calau GmbH & Co. KG, Sehestedt 100.0 3 55,662 6Windpark Cottbuser See GmbH & Co. KG, Sehestedt 100.0 3 19,824 2,361Windpark Dahme GmbH & Co. KG, Sehestedt 100.0 3 46,359 3,776Windpark Eckolstädt GmbH & Co. KG, Sehestedt 100.0 3 49,078 1,659Windpark Freyenstein-Halenbeck GmbH & Co. KG, Sehestedt 100.0 3 25,877 2,244Windpark Kesfeld-Heckhuscheid GmbH & Co. KG, Sehestedt 100.0 3 27,035 840Windpark Kirf GmbH & Co. KG, Sehestedt 100.0 3 6,547 583Windpark Kittlitz GmbH & Co. KG, Sehestedt 100.0 3 10,199 611Windpark Pröttlin GmbH & Co. KG, Sehestedt 100.0 3 19,447 1,932Windpark Quitzow GmbH & Co. KG, Sehestedt 100.0 3 19,232 1,657Windpark Redekin-Genthin GmbH & Co. KG, Sehestedt 100.0 3 30,414 1,392Windpark Schönwalde GmbH & Co. KG, Sehestedt 100.0 3 21,606 780Windpark Waltersdorf GmbH & Co. KG Renditefonds, Sehestedt 100.0 3 12,313 737Windpark Werder Zinndorf GmbH & Co. KG, Sehestedt 100.0 3 32,328 2,540

Joint venturesDealis Fund Operations GmbH, Frankfurt am Main 50.0 18,933 145

AssociatesAV Packaging GmbH, Munich 51.0 13,944 (4,845)

Other participations between 5 and 20% of voting rightsEXTREMUS Versicherungs-Aktiengesellschaft, Cologne 16.0FC Bayern München AG, Munich 8.3MLP AG, Wiesloch 8.8Protektor Lebensversicherungs-AG, Berlin 10.0Sana Kliniken AG, Ismaning 14.3


ownEd 1 Equity

nEt incomE

(loSS)

% € thou € thou

ForEiGn EntitiESAffiliates114 Venture LP, Wilmington, DE 99.0 166,962 (33)490 Fulton JV LP, New York, NY 96.5 3 131,012 (155)490 Lower Unit LP, New York, NY 100.0 129,728 4,492A.V.I.P. Assurance Vie de Prévoyance SA, Courbevoie 100.0 3 105,038 7,020ACMAR SA, Casablanca 55.0 3 6,717 1,608Aero-Fonte S.r.l., Catania 100.0 3 12,568 4,346AGA Alarmcentrale NL B.V., Amsterdam 100.0 3 11,342 606AGA Assistance (India) Private Limited, Gurgaon 100.0 3 8,550 1,827AGA Assistance Australia Pty Ltd., Toowong 100.0 3 23,609 9,642AGA Assistance Beijing Services Co. Ltd., Beijing 100.0 3 13,013 7,750AGA Assistance Japan Co. Ltd., Tokyo 80.1 3 6,891 4,379AGA Inc., Richmond, VA 100.0 3 46,644 (1,571)AGA Service Company Corp., Richmond, VA 100.0 3 61,728 3,074AGCS Marine Insurance Company, Chicago, IL 100.0 260,596 72,236AGCS Resseguros Brasil S.A., Rio de Janeiro 100.0 60,133 (9,476)AGF Benelux S.A., Luxembourg 100.0 350 4,324AGF Holdings (UK) Limited, Guildford 100.0 85,594 4,213AGF Insurance Limited, Guildford 100.0 136,351 (12,678)AGF Inversiones S.A., Buenos Aires 100.0 19,174 11,397AGR Services Pte Ltd., Singapore 100.0 39,242 (64)Allegiance Marketing Group LLC, North Palm Beach, FL 100.0 3 28,310 2,633Allianz (UK) Limited, Guildford 100.0 529,175 265Allianz Africa S.A., Paris 100.0 3 27,955 3,652Allianz Alapkezelõ Zrt., Budapest 100.0 6,827 3,443Allianz Annuity Company of Missouri, Clayton, MO 100.0 3 418,388 114,374Allianz Argentina Compañía de Seguros Generales S.A., Buenos Aires 100.0 55,415 11,148Allianz Argentina RE S.A., Buenos Aires 100.0 3 16,160 4,586Allianz Asset Management of America L.P., Dover, DE 100.0 833,644 1,128,203Allianz Asset Management of America LLC, Dover, DE 100.0 5,684,761 1,371,374Allianz Asset Management U.S. Holding II LLC, Dover, DE 100.0 225,787 52,976Allianz Australia Insurance Limited, Sydney 100.0 3 1,373,092 258,571Allianz Australia Life Insurance Limited, Sydney 100.0 3 49,231 8,764Allianz Australia Limited, Sydney 100.0 3 1,074,311 148,784Allianz Ayudhya Assurance Public Company Limited, Bangkok 62.6 3 332,363 48,235Allianz Bank Bulgaria AD, Sofia 99.9 3 102,608 11,361Allianz Bank Financial Advisors S.p.A., Milan 100.0 3 212,313 3,832Allianz Banque S.A., Courbevoie 100.0 3 117,834 4,806Allianz Benelux S.A., Brussels 100.0 841,159 519Allianz Bulgaria Holding AD, Sofia 66.2 53,375 17,240Allianz Cameroun Assurances SA, Douala 75.4 3 13,524 2,336Allianz Carbon Investments B.V., Amsterdam 100.0 18,091 (4,603)Allianz Chicago Private Reit LP, Wilmington, DE 100.0 3 171,281 – Allianz China General Insurance Company Ltd., Guangzhou 100.0 3 29,881 (19,766)Allianz China Life Insurance Co. Ltd., Shanghai 51.0 3 28,635 1,253Allianz Colombia S.A., Bogotá D.C. 100.0 108,265 (3,082)Allianz Compañía de Seguros y Reaseguros S.A., Barcelona 99.9 3 996,406 203,455Allianz Cornhill Information Services Private Ltd., Trivandrum 100.0 32,917 4,585Allianz Côte d'Ivoire Assurances SA, Abidjan 74.1 3 7,684 2,908Allianz Côte d'Ivoire Assurances Vie SA, Abidjan 71.0 3 7,249 1,846Allianz Digital Corporate Ventures Luxembourg S.à r.l., Luxemburg 100.0 5,387 (53)Allianz do Brasil Participações Ltda., São Paulo 100.0 3 271,288 (111,657)Allianz Elementar Lebensversicherungs-Aktiengesell-schaft, Vienna 100.0 175,292 (3,696)Allianz Elementar Versicherungs-Aktiengesellschaft, Vienna 100.0 420,509 76,243Allianz Engineering Inspection Services Limited, Guildford 100.0 6,363 (716)Allianz Equity Investments Ltd., Guildford 100.0 161,899 3,616Allianz Europe B.V., Amsterdam 100.0 44,268,040 3,996,629Allianz Europe Ltd., Amsterdam 100.0 8,065,361 432,027Allianz Finance II B.V., Amsterdam 100.0 15,556 2,846Allianz Finance II Luxembourg S.à r.l., Luxembourg 100.0 3,673,532 27,128

ownEd 1 Equity

nEt incomE

(loSS)

% € thou € thou

Allianz Finance VII Luxembourg S.A., Luxembourg 100.0 783,534 (8,153)Allianz Finance VIII Luxembourg S.A., Luxembourg 100.0 240,448 (52)Allianz Fire and Marine Insurance Japan Ltd., Tokyo 100.0 17,577 2,437Allianz Foglalkoztatói Nyugdíjszolgáltató Zrt., Budapest 74.0 6,454 72Allianz France Investissement OPCI, Paris 100.0 3 129,887 5,372Allianz France Real Estate Invest SPPICAV, Paris 100.0 3 1,415,953 26,342Allianz France Richelieu 1 S.A.S., Paris 100.0 3 270,128 914Allianz France S.A., Paris 100.0 3 6,610,890 1,190,797Allianz Fund Investments Inc., Wilmington, DE 100.0 3 257,533 3,212Allianz General Insurance Company (Malaysia) Berhad p.l.c., Kuala Lumpur 100.0 3 318,722 56,731Allianz General Laos Ltd., Vientiane 51.0 3 8,676 2,872Allianz Global Assistance International SA, Paris 100.0 3 331,468 18,530Allianz Global Assistance New Zealand Limited, Auckland 100.0 3 5,691 897Allianz Global Corporate & Specialty do Brasil Participações Ltda., Rio de Janeiro 100.0 3 60,887 (9,555)Allianz Global Corporate & Specialty of Africa (Proprietary) Ltd., Johannesburg 100.0 7,407 258Allianz Global Corporate & Specialty South Africa Ltd., Johannesburg 100.0 7,568 258Allianz Global Investors Asia Pacific Ltd., Hong Kong 100.0 33,980 9,782Allianz Global Investors Distributors LLC, Dover, DE 100.0 31,509 (1,651)Allianz Global Investors Ireland Ltd., Dublin 100.0 2,657 2,625Allianz Global Investors Korea Limited, Seoul 100.0 27 2Allianz Global Investors Singapore Ltd., Singapore 100.0 12,720 6,978Allianz Global Investors Taiwan Ltd., Taipei 100.0 28,051 11,301Allianz Global Investors U.S. Holdings LLC, Dover, DE 100.0 93,340 91,102Allianz Global Investors U.S. LLC, Dover, DE 100.0 55,703 123,526Allianz Global Life Ltd., Dublin 100.0 3 71,570 7,444Allianz Global Risks US Insurance Company Corp., Chicago, IL 100.0 3 816,925 26,558Allianz Hayat ve Emeklilik A.S., Istanbul 89.0 3 30,623 (2,317)Allianz Hellas Insurance Company S.A., Athens 100.0 137,548 11,600Allianz Hold Co Real Estate S.à r.l., Luxembourg 100.0 349,943 5,604Allianz Holding eins GmbH, Vienna 100.0 2,355,705 337,772Allianz Holding France SAS, Paris 100.0 3 8,077,461 558,222Allianz Holdings plc, Guildford 100.0 1,203,665 26,821Allianz Hungária Biztosító Zrt., Budapest 100.0 109,727 – Allianz IARD S.A., Paris 100.0 3 1,971,643 220,115Allianz Individual Insurance Group LLC, Minneapolis, MN 100.0 3 202,016 (12,012)Allianz Infrastructure Czech HoldCo I S.à r.l., Luxembourg 100.0 8,654 44,794Allianz Infrastructure Czech HoldCo II S.à r.l., Luxembourg 100.0 8,615 44,830Allianz Infrastructure Luxembourg Holdco I S.A., Luxembourg 100.0 1,048,522 13Allianz Infrastructure Luxembourg Holdco II S.A., Luxembourg 100.0 218,895 (13)Allianz Infrastructure Luxembourg I S.à r.l., Luxembourg 100.0 1,447,387 41,335Allianz Infrastructure Norway Holdco I S.à r.l., Luxembourg 100.0 61,002 175Allianz Infrastructure Spain Holdco I S.à r.l., Luxembourg 100.0 54,433 (7)Allianz Infrastructure Spain Holdco II S.à r.l., Luxembourg 100.0 80,139 699Allianz Insurance Company Lanka Limited, Saram 100.0 3 5,742 178Allianz Insurance Company-Egypt S.A.E., Cairo 95.0 3 19,431 2,505Allianz Insurance plc, Guildford 100.0 1,323,880 79,077Allianz Invest Kapitalanlagegesellschaft mbH, Vienna 100.0 3 7,399 1,850Allianz Investmentbank Aktiengesellschaft, Vienna 100.0 34,993 7,481Allianz Irish Life Holdings p.l.c., Dublin 66.5 3 61,516 55,060Allianz Leasing Bulgaria AD, Sofia 51.0 5,471 891Allianz Life & Annuity Company, Minneapolis, MN 100.0 3 13,337 1,093Allianz Life (Bermuda) Ltd., Hamilton 100.0 3 7,507 1,261Allianz Life Assurance Company-Egypt S.A.E., Cairo 100.0 3 54,311 14,927Allianz Life Financial Services LLC, Minneapolis, MN 100.0 3 31,286 568Allianz Life Insurance Company Ltd., Moscow 100.0 3 1,238 (8,721)Allianz Life Insurance Company of Missouri, Clayton, MO 100.0 3 275,376 10,477Allianz Life Insurance Company of New York, New York, NY 100.0 3 133,389 (961)Allianz Life Insurance Company of North America, Minneapolis, MN 100.0 5,399,430 464,806Allianz Life Insurance Japan Ltd., Tokyo 100.0 8,961 2,177




ownEd 1 Equity

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% € thou € thou

Allianz Life Insurance Malaysia Berhad p.l.c., Kuala Lumpur 100.0 3 153,255 15,030Allianz Life Luxembourg S.A., Luxembourg 100.0 67,498 5,727Allianz Malaysia Berhad p.l.c., Kuala Lumpur 75.0 3 231,602 4,750Allianz Marine (UK) Ltd., Ipswich 100.0 12,101 60Allianz Mena Holding Bermuda Ltd., Beirut 99.9 3 21,906 (218)Allianz México S.A. Compañía de Seguros, Mexico City 100.0 90,174 6,100Allianz Nederland Asset Management B.V., Rotterdam 100.0 3 31,999 4,897Allianz Nederland Groep N.V., Rotterdam 100.0 3 326,703 202,420Allianz Nederland Levensverzekering N.V., Rotterdam 100.0 3 298,010 43,617Allianz New Europe Holding GmbH, Vienna 100.0 906,665 169,071Allianz New Zealand Limited, Auckland 100.0 3 28,992 4,583Allianz of America Inc., Wilmington, DE 100.0 10,203,675 2,641,272Allianz p.l.c., Dublin 100.0 3 321,798 56,436Allianz Pensionskasse Aktiengesellschaft, Vienna 100.0 10,850 507Allianz penzijní spolecnost a.s., Prague 100.0 3 27,366 995Allianz pojistovna a.s., Prague 100.0 3 169,341 37,593Allianz Polska Services Sp. z o.o., Warsaw 100.0 3 9,800 (1,509)Allianz Popular Asset Management SGIIC S.A., Madrid 100.0 29,620 23,969Allianz Popular Pensiones EGFP S.A., Madrid 100.0 50,188 20,206Allianz Popular S.L., Madrid 60.0 1,018,396 83,592Allianz Popular Vida Compañía de Seguros y Reaseguros S.A., Madrid 100.0 171,486 50,177Allianz Private Equity UK Holdings Limited, London 100.0 20,608 24Allianz Properties Limited, Guildford 100.0 3 225,358 10,928Allianz Re Dublin Limited, Dublin 100.0 3 366,729 122,009Allianz Real Estate France SAS, Paris 100.0 3 10,964 5,154Allianz Renewable Energy Partners I LP, London 100.0 226,643 4,419Allianz Renewable Energy Partners II Limited, London 100.0 94,731 7,365Allianz Renewable Energy Partners III LP, London 98.6 181,905 1,046Allianz Renewable Energy Partners IV Limited, London 98.6 426,606 11,399Allianz Renewable Energy Partners of America LLC, Wilmington, DE 100.0 94,866 (922)Allianz Renewable Energy Partners V plc., London 100.0 618,674 15,033Allianz Risk Transfer (Bermuda) Ltd., Hamilton 100.0 46,337 4,207Allianz Risk Transfer AG, Zurich 100.0 3 643,417 61,224Allianz Risk Transfer Inc., New York, NY 100.0 67,664 2,241Allianz Risk Transfer N.V., Amsterdam 100.0 31,876 244Allianz S.p.A., Trieste 100.0 3 3,674,563 634,825Allianz Saúde S.A., São Paulo 100.0 3 49,902 (54,200)Allianz Seguros de Vida S.A., Bogotá D.C. 100.0 55,415 8,349Allianz Seguros S.A., São Paulo 100.0 3 269,066 (113,033)Allianz Seguros S.A., Bogotá D.C. 100.0 50,538 (2,022)Allianz Services (UK) Limited, London 100.0 6,603 (202)Allianz Sigorta A.S., Istanbul 96.2 3 472,373 100,487Allianz SNA s.a.l., Beirut 100.0 3 51,519 5,638Allianz Société Financière S.à r.l., Luxembourg 100.0 1,401,280 21,944Allianz South America Holding B.V., Amsterdam 100.0 411,921 6,861Allianz Specialised Investments Limited, London 100.0 7,869 (14)Allianz Subalpina Holding S.p.A., Turin 98.1 3 239,283 47,578Allianz Suisse Lebensversicherungs-Gesellschaft AG, Wallisellen 100.0 3 886,526 71,424Allianz Suisse Versicherungs-Gesellschaft AG, Wallisellen 100.0 3 636,156 248,834Allianz Taiwan Life Insurance Co. Ltd., Taipei 99.7 3 149,955 (7,092)Allianz Tiriac Asigurari SA, Bucharest 52.2 167,992 18,273Allianz Tiriac Pensii Private Societate de administrare a fondurilor de pensii private S.A., Bucharest 100.0 13,526 5,381Allianz Underwriters Insurance Company Corp., Burbank, CA 100.0 3 63,393 – Allianz US Investment LP, Wilmington, DE 100.0 635,390 (2,387)Allianz US Private REIT LP, Wilmington, DE 100.0 632,700 2,346Allianz Vie S.A., Paris 100.0 3 2,784,160 253,101Allianz Vorsorgekasse AG, Vienna 100.0 20,321 4,915Allianz Worldwide Care S.A., Paris 100.0 3 268,844 7,552Allianz Worldwide Partners S.A.S., Paris 100.0 3 403,982 15,281Allianz Yasam ve Emeklilik A.S., Istanbul 80.0 3 101,438 33,202Allianz Zagreb d.d., Zagreb 83.2 3 106,832 11,415Allianz ZB d.o.o. Company for the Management of Obligatory Pension Funds, Zagreb 51.0 21,812 10,084

ownEd 1 Equity

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(loSS)

% € thou € thou

Allianz-Slovenská DSS a.s., Bratislava 100.0 3 59,853 6,198Amaya Compañía de Seguros y Reaseguros S.A., Madrid 100.0 38,950 187American Automobile Insurance Company Corp., Earth City, MO 100.0 3 135,794 3,284American Financial Marketing Inc., Minneapolis, MN 100.0 3 30,574 3,810AMOS Austria GmbH, Vienna 100.0 18,099 (1,005)AMOS European Services SAS, Paris 100.0 3 24,212 162AMOS IberoLatAm S.L., Barcelona 100.0 80,952 – AMOS International B.V., Amsterdam 100.0 35,522 (28)AMOS IT Suisse AG, Wallisellen 100.0 3 8,550 2,607AMOS Italy S.p.c.A., Milan 100.0 3 15,841 43AMOS of America Inc., Wilmington, DE 100.0 42,711 (12,165)Ann Arbor Annuity Exchange Inc., Ann Arbor, MI 100.0 3 12,818 3,794Antoniana Veneta Popolare Vita S.p.A., Trieste 100.0 3 36,203 3,552APKV US Private REIT LP, New York, NY 100.0 122,144 (797)Arab Gulf Health Services LLC, Dubai 100.0 3 7,518 1,777Arcalis SA, Courbevoie 100.0 3 110,728 5,383Arges Investments I N.V., Amsterdam 100.0 3 54,700 1,625Arges Investments II N.V., Amsterdam 100.0 3 48,557 554Asit Services S.R.L., Bucharest 100.0 30,490 1,995Assistance Courtage d'Assurance et de Réassurance S.A., Paris 100.0 3 11,793 5,475Associated Indemnity Corporation, Novato, CA 100.0 3 69,608 1,522AZ Euro Investments II S.à r.l., Luxembourg 100.0 270,036 6,208AZ Euro Investments S.à r.l., Luxembourg 100.0 3,218,819 21,614AZ Jupiter 10 B.V., Amsterdam 100.0 104,991 (5,061)AZ Jupiter 4 B.V., Amsterdam 100.0 24,899 132AZ Jupiter 8 B.V., Amsterdam 100.0 2,643,749 75AZ Jupiter 9 B.V., Amsterdam 100.0 79,318 (14,542)AZ Vers US Private REIT LP, New York, NY 100.0 40,874 (276)AZGA Service Canada Inc., Kitchener, ON 55.0 3 11,708 995AZL PF Investments Inc., Minneapolis, MN 100.0 3 506,154 – AZOA Services Corporation, New York, NY 100.0 8,914 (10)Beleggingsmaatschappij Willemsbruggen B.V., Rotterdam 100.0 3 82,132 1,859Beykoz Gayrimenkul Yatirim Insaat Turizm Sanayi ve Ticaret A.S., Ankara 100.0 174,684 3,023Botanic Building SPRL, Brussels 100.0 46,048 3,221Brasil de Imóveis e Participações Ltda., São Paulo 100.0 3 5,588 204British Reserve Insurance Co. Ltd., Guildford 100.0 11,035 3,653Calobra Investments Sp. z o.o., Warsaw 100.0 153,373 (17,744)Calypso S.A., Paris 100.0 3 19,227 (16,694)CAP Rechtsschutz-Versicherungsgesellschaft AG, Wallisellen 100.0 3 18,292 5,339Caroline Berlin S.C.S., Luxembourg 93.2 207,658 (9,086)CEPE de Mont Gimont S.à r.l., Versailles 100.0 3 6,174 338Château Larose Trintaudon S.A., Saint Laurent Médoc 100.0 3 35,996 72Chicago Insurance Company Corp., Chicago, IL 100.0 3 44,816 648CIC Allianz Insurance Ltd., Sydney 100.0 3 37,952 3,922Companhia de Seguros Allianz Portugal S.A., Lisbon 64.8 3 267,348 20,041Corn Investment Ltd., London 100.0 17,001 (4,536)CPRN Thailand Ltd., Bangkok 100.0 3 8,414 (98)CreditRas Assicurazioni S.p.A., Milan 50.0 3 30,502 4,716CreditRas Vita S.p.A., Milan 50.0 3 450,980 38,839Darta Saving Life Assurance Ltd., Dublin 100.0 3 160,468 42,545Deeside Investments Inc., Wilmington, DE 50.1 81,853 8,276Diamond Point a.s., Prague 100.0 3 12,068 181Dresdner Kleinwort Pfandbriefe Investments II Inc., Minneapolis, MN 100.0 3 547,491 8,330EF Solutions LLC, Wilmington, DE 100.0 8,909 611Energie Eolienne Lusanger S.à r.l., Versailles 100.0 3 4,010 (94)Eolica Erchie S.r.l., Lecce 100.0 3 4,900 (705)Euler Hermes Collections Sp. z o.o., Warsaw 100.0 3 8,004 (1,357)Euler Hermes Crédit France S.A.S., Paris la Défense 100.0 3 150,409 730Euler Hermes Group SA, Paris La Défense 69.5 3 1,303,698 195,456Euler Hermes Hellas Credit Insurance SA, Athens 100.0 3 12,093 1,222Euler Hermes Luxembourg Holding S.à r.l., Luxembourg 100.0 3 98,310 (19)Euler Hermes North America Holding Inc., Owings Mills, MD 100.0 3 166,261 22,433


ownEd 1 Equity

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% € thou € thou

Euler Hermes North America Insurance Company Inc., Baltimore, MD 100.0 3 151,181 26,861Euler Hermes Patrimonia SA, Brussels 100.0 3 167,444 6,267Euler Hermes Ré SA, Luxembourg 100.0 3 61,055 – Euler Hermes Real Estate SPPICAV, Paris 60.0 3 149,724 (1,881)Euler Hermes Recouvrement France S.A.S., Paris la Défense 100.0 3 61,261 8,179Euler Hermes Reinsurance AG, Wallisellen 100.0 3 727,710 126,194Euler Hermes S.A., Brussels 100.0 3 1,204,809 86,085Euler Hermes Seguros de Crédito S.A., São Paulo 100.0 3 8,638 (1,823)Euler Hermes Service AB, Stockholm 100.0 3 20,563 11,142Euler Hermes Services AG, Wallisellen 100.0 3 5,322 3,321Euler Hermes Services B.V., 's-Hertogenbosch 100.0 3 6,657 2,117Euler Hermes Services Sp. z o.o., Warsaw 100.0 3 8,380 1,598Euler Hermes Serviços Ltda., São Paulo 100.0 3 9,712 (1,705)Euler Hermes South Express S.A., Brussels 100.0 3 38,030 1,110Euler Hermes World Agency SASU, Paris la Défense 100.0 3 6,779 113Eurl 20/22 Le Peletier, Paris la Défense 100.0 3 51,813 (1,850)Eurosol Invest S.r.l., Udine 100.0 3 9,046 410Fénix Directo Compañía de Seguros y Reaseguros S.A., Madrid 100.0 41,620 3,710Fireman's Fund Indemnity Corporation, Liberty Corner, NJ 100.0 3 12,321 264Fireman's Fund Insurance Company of Hawaii Inc., Honolulu, HI 100.0 3 7,466 92Fireman's Fund Insurance Company of Ohio Corp., Cincinnati, OH 100.0 3 40,483 739Fragonard Assurance S.A., Paris 100.0 3 99,327 24,222Fusion Company Inc., Richmond, VA 100.0 6,058 (1,329)GamePlan Financial Marketing LLC, Woodstock, GA 100.0 3 54,369 9,150Generation Vie S.A., Courbevoie 52.5 3 69,698 1,269Genialloyd S.p.A., Milan 100.0 3 190,940 49,214Havelaar & van Stolk B.V., Rotterdam 100.0 3 7,632 567Home & Legacy Insurance Services Limited, London 100.0 22,135 2,923Immovalor Gestion S.A., Paris 100.0 3 6,926 2,968Insurance CJSC "Medexpress", Saint Petersburg 100.0 3 10,584 325Interstate Fire & Casualty Company, Chicago, IL 100.0 3 129,271 2,782Investitori SGR S.p.A., Milan 100.0 3 18,517 4,225Jefferson Insurance Company Corp., New York, NY 100.0 3 144,387 6,692Kiinteistö OY Eteläesplanadi 2, Helsinki 100.0 33,736 (393)La Rurale SA, Paris 99.9 3 7,665 1,081Lloyd Adriatico Holding S.p.A., Trieste 99.9 3 760,410 111,272Martin Maurel Vie SA, Courbevoie 100.0 3 15,067 344Mondial Assistance Australia Holding Pty Ltd., Toowong 100.0 3 20,965 – Mondial Assistance France SAS, Paris 95.0 3 33,880 14,074Mondial Assistance United Kingdom Ltd., Croydon Surrey 100.0 3 9,434 4,587Mondial Serviços Ltda., São Bernardo do Campo 100.0 3 19,916 3,718National Surety Corporation, Chicago, IL 100.0 3 106,614 2,366NEXtCARE Holding WLL, Manama 75.0 3 14,572 2,757NFJ Investment Group LLC, Dover, DE 100.0 8,452 41,177OJSC "My Clinic", Moscow 100.0 3 13,617 (83)OJSC Insurance Company Allianz, Moscow 100.0 3 81,866 (45,374)OJSC Insurance Company ROSNO-MS, Moscow 100.0 3 15,741 3,330OOO "IC Euler Hermes Ru", Moscow 100.0 3 5,467 856Oppenheimer Group Inc., Dover, DE 100.0 56,201 1,066Orione PV S.r.l., Milan 100.0 3 8,403 218Orsa Maggiore PV S.r.l., Milan 100.0 3 18,058 1,602Pacific Investment Management Company LLC, Dover, DE 95.6 453,713 1,421,926Personalized Brokerage Service LLC, Topeka, KS 100.0 3 6,596 2,129Pet Plan Ltd., Guildford 100.0 124,844 (71)PFP Holdings Inc., Dover, DE 100.0 231,983 5,315PGA Global Services LLC, Dover, DE 100.0 9,962 1,214PIMCO Asia Ltd., Hong Kong 100.0 18,437 (897)PIMCO Asia Pte Ltd., Singapore 100.0 13,065 2,430PIMCO Australia Pty Ltd., Sydney 100.0 22,560 15,797PIMCO Canada Corp., Toronto, ON 100.0 14,323 6,618PIMCO Europe Ltd., London 100.0 188,563 86,268PIMCO Global Advisors (Ireland) Ltd., Dublin 100.0 19,226 5,711

ownEd 1 Equity

nEt incomE

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% € thou € thou

PIMCO Global Advisors LLC, Dover, DE 100.0 333,545 138,467PIMCO Global Holdings LLC, Dover, DE 100.0 22,957 7,695PIMCO Investments LLC, Dover, DE 100.0 101,558 36,121PIMCO Japan Ltd., Road Town 100.0 33,706 32,269POD Allianz Bulgaria AD, Sofia 65.9 14,183 8,151Primacy Underwriting Management Pty Ltd., Melbourne 100.0 3 7,192 (52)Protexia France S.A., Paris 100.0 3 30,614 7,812PT Asuransi Allianz Life Indonesia p.l.c., Jakarta 99.8 3 249,757 54,316PT Asuransi Allianz Utama Indonesia Ltd., Jakarta 97.8 3 132,081 1,963PTE Allianz Polska S.A., Warsaw 100.0 3 70,135 7,572Q207 S.C.S., Luxembourg 94.0 91,375 2,881Questar Capital Corporation, Minneapolis, MN 100.0 3 12,265 (4,782)Real Faubourg Haussmann SAS, Paris la Défense 100.0 72,147 56,466Real FR Haussmann SAS, Paris la Défense 100.0 63,028 3,507Redoma S.à r.l., Luxembourg 100.0 29,530 (17)Roster Financial LLC, Mount Laurel, NJ 100.0 3 25,385 951SA Carène Assurance, Paris 100.0 3 13,099 429San Francisco Reinsurance Company Corp., Petaluma, CA 100.0 542,021 (11,206)SAS 20 pompidou, Paris la Défense 100.0 3 119,034 4,532SAS Allianz Forum Seine, Paris la Défense 100.0 3 248,515 10,056SAS Allianz Logistique, Paris la Défense 100.0 3 43,005 5SAS Allianz Platine, Paris la Défense 100.0 3 233,655 4,855SAS Allianz Rivoli, Paris la Défense 100.0 3 105,362 3,140SAS Allianz Serbie, Paris la Défense 100.0 3 259,906 4,624SAS Madeleine Opéra, Paris la Défense 100.0 3 647,025 29,241SAS Passage des princes, Paris la Défense 100.0 3 118,535 3,425SC Tour Michelet, Paris la Défense 100.0 3 66,447 2,058SCI 46 Desmoulins, Paris la Défense 100.0 3 120,928 4,128SCI Allianz ARC de Seine, Paris la Défense 100.0 3 224,700 2,599SCI Allianz Chateaudun, Paris la Défense 100.0 3 120,349 1,648SCI Allianz Invest Pierre, Paris 100.0 3 129,728 2,081SCI Allianz Messine, Paris la Défense 100.0 3 242,220 6,211SCI AVIP SCPI Selection, Courbevoie 100.0 3 38,357 4,358SCI ESQ, Paris la Défense 75.0 3 105,195 2,343SCI Via Pierre 1, Paris la Défense 100.0 3 247,094 5,273SCI Volnay, Paris la Défense 100.0 3 173,032 2,196SI 173-175 Boulevard Haussmann SAS, Paris la Défense 100.0 41,499 7,643Siac Services S.r.l., Rome 100.0 3 8,524 8,024Silex Gas Norway AS, Oslo 100.0 3 83,365 2,472Sirius S.A., Luxembourg 94.8 312,900 5,785Società Agricola San Felice S.p.A., Milan 100.0 3 30,711 332Société Foncière Européenne B.V., Amsterdam 100.0 1,205,821 2,760Société Nationale Foncière S.A.L., Beirut 66.0 3 11,771 201Sofiholding S.A., Brussels 100.0 14,347 291South City Office Broodthaers SA, Brussels 100.0 51,723 2,092SpaceCo S.A., Paris 100.0 7,364 1,883StocksPLUS Management Inc., Dover, DE 100.0 4,876 (114)TFI Allianz Polska S.A., Warsaw 100.0 3 5,198 1,433The American Insurance Company Corp., Cincinnati, OH 100.0 3 239,412 7,470The Annuity Store Financial & Insurance Services LLC, Sacramento, CA 100.0 3 19,776 1,436Three Pillars Business Solutions Limited, Guildford 100.0 6,061 (52)Top Immo A GmbH & Co. KG, Vienna 100.0 5,776 557Top Immo Besitzgesellschaft B GmbH & Co. KG, Vienna 100.0 8,770 980Top Versicherungsservice GmbH, Vienna 100.0 3 17,801 1,181Towarzystwo Ubezpieczen Euler Hermes S.A., Warsaw 100.0 3 88,404 2,727Trafalgar Insurance Public Limited Company, Guildford 100.0 52,601 2,258TU Allianz Polska S.A., Warsaw 100.0 3 190,262 36,003TU Allianz Zycie Polska S.A., Warsaw 100.0 3 91,534 10,178VertBois S.à r.l., Luxembourg 100.0 3 20,402 315Vordere Zollamtsstraße 13 GmbH, Vienna 100.0 19,208 1,488WFC Investments Sp. z o.o., Warsaw 87.5 178,494 6,764YAO Investment S.à r.l., Luxembourg 100.0 3 27,297 3,329Yorktown Financial Companies Inc., Minneapolis, MN 100.0 3 124,950 – ZAD Allianz Bulgaria, Sofia 87.4 28,895 5,343ZAD Allianz Bulgaria Zhivot, Sofia 99.0 18,467 4,496ZAD Energia, Sofia 51.0 27,132 8,940




ownEd 1 Equity

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% € thou € thou

Joint venturesA&A Centri Commerciali S.r.l., Milan 50.0 3 152,610 5,155Allee-Center Kft., Budapest 50.0 3 106,680 8,055Allianz C.P. General Insurance Co. Ltd., Bangkok 50.0 24,048 189AMLI-Allianz Investment LP, Wilmington, DE 75.0 176,643 618AZ/JH Co-Investment Venture (DC) LP, Wilmington, DE 80.0 3 242,054 209AZ/JH Co-Investment Venture (IL) LP, Wilmington, DE 80.0 3 214,199 322Companhia de Seguro de Créditos S.A., Lisbon 50.0 3 48,190 7,887Euromarkt Center d.o.o., Ljubljana 50.0 3 105,501 4,874Fiumaranuova S.r.l., Genoa 50.1 3 167,419 8,579Guotai Jun'an Allianz Fund Management Co. Ltd., Shanghai 49.0 74,997 26,606International Shopping Centre Investment S.A., Luxembourg 50.0 3 57,340 (442)Israel Credit Insurance Company Ltd., Tel Aviv 50.0 3 38,105 7,686NRF (Finland) AB, Västeras 50.0 3 69,617 4,361SES Shopping Center AT1 GmbH, Salzburg 50.0 3 158,227 5,131Solunion Compañía Internacional de Seguros y Reaseguros SA, Madrid 50.0 3 115,052 3,482TopTorony Ingatlanhasznosító Zrt., Budapest 50.0 3 13,655 (1,692)

AssociatesAllianz Saudi Fransi Cooperative Insurance Company, Riyadh 32.5 3 41,574 3,575Archstone Multifamily Partners AC JV LP, Engelwood, CO 40.0 3 86,634 (2,268)Archstone Multifamily Partners AC LP, Wilmington, DE 28.6 3 246,675 (4,325)Areim Fastigheter 2 AB, Stockholm 23.3 3 56,326 3,880Bajaj Allianz General Insurance Company Ltd., Pune 26.0 363,715 72,443Bajaj Allianz Life Insurance Company Ltd., Pune 26.0 1,007,557 116,644Brunei National Insurance Company Berhad Ltd., Bandar Seri Begawan 25.0 8,610 1,521Chicago Parking Meters LLC, Wilmington, DE 49.9 3 236,692 37,062CPIC Allianz Health Insurance Co. Ltd., Shanghai 22.9 127,499 (4,432)Douglas Emmett Partnership X LP, Santa Monica, CA 28.6 3 72,780 842Four Oaks Place LP, Wilmington, DE 49.0 3 453,795 13,127Helios Silesia Holding B.V., Amsterdam 45.0 3 103,477 4,311Henderson UK Outlet Mall Partnership LP, Edinburgh 19.5 172,126 3,063Medgulf Allianz Takaful B.S.C., Seef 25.0 3 12,328 13OeKB EH Beteiligungs- und Management AG, Vienna 49.0 3 121,491 11,687Professional Agencies Reinsurance Limited, Hamilton 22.0 3 24,909 3,474Residenze CYL S.p.A., Milan 33.3 3 119,185 (338)SAS Alta Gramont, Paris 49.0 3 291,789 2,225SCI Bercy Village, Paris 49.0 3 47,334 7,036SK Versicherung AG, Vienna 25.8 3 12,755 1,069SNC Alta CRP Gennevilliers, Paris 49.0 3 34,772 1,956SNC Alta CRP La Valette, Paris 49.0 3 22,495 (280)SNC Société d'aménagement de la Gare de l'Est, Paris 49.0 3 14,002 2,115Solveig Gas Holdco AS, Oslo 30.0 3 274,349 9,810

Other participations between 5 and 20% of voting rightsAl Nisr Al Arabi, Amman 18.0Banco BPI S.A., Porto 8.4Sri Ayudhya Capital Public Company Limited, Bangkok 16.8Wildlife Works Carbon LLC, San Francisco, CA 10.0Zagrebacka banka d.d., Zagreb 11.7

1 Percentage includes equity participations held by dependent entities in full, even if the Allianz Group’s share in the dependent entity is below 100 %.

2 Profit and loss transfer agreement.3 As per annual financial statement 2014.4 Insolvent. Dependent entities are shown in a way, which reflects the state as of the date of filing for

insolvency.5 As per annual financial statement 2010. This is only applicable for manroland AG and their subsidiaries.


Further InformationResponsibility statementTo the best of our knowledge, and in accordance with the applicable reporting principles, the financial statements of Allianz SE give a true and fair view of the assets, liabilities, financial position and profit or loss of the company, and the management report includes a fair review of the development and performance of the business and the position of the company, together with a description of the principal opportunities and risks associated with the expected development of the company.

Munich, 16 February 2016

Allianz SEThe Board of Management

107Annual Report 2015 Allianz se

C Financial Statements of Allianz se


Auditor’s report

We have audited the annual financial statements, comprising the balance sheet, the income statement and the notes to the financial statements, together with the bookkeeping system, and the manage-ment report of the Allianz SE, Munich, for the business year from 1 January to 31 December 2015. The maintenance of the books and records and the preparation of the annual financial statements and management report in accordance with German commercial law and supplementary provisions of the articles of incorporation are the responsibility of the Company’s management. Our responsibility is to express an opinion on the annual financial statements, together with the bookkeeping system, and the management report based on our audit.

We conducted our audit of the annual financial statements in accordance with § 317 HGB [“Handelsgesetzbuch“: “German Com-mercial Code“] and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the annual financial statements in accordance with German principles of proper accounting and in the management report are detected with reason-able assurance. Knowledge of the business activities and the eco-nomic and legal environment of the Company and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the books and records, the annual financial statements and the management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the account-ing principles used and significant estimates made by management, as well as evaluating the overall presentation of the annual financial statements and management report. We believe that our audit pro-vides a reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion, based on the findings of our audit, the annual financial statements comply with the legal requirements and supple-mentary provisions of the articles of incorporation and give a true and fair view of the net assets, financial position and results of oper-ations of the Company in accordance with German principles of proper accounting. The management report is consistent with the annual financial statements and as a whole provides a suitable view of the Company’s position and suitably presents the opportunities and risks of future development.

Munich, 29 February 2016

KPMG AGWirtschaftsprüfungsgesellschaft

Becker Dr. PfaffenzellerWirtschaftsprüfer Wirtschaftsprüfer (Independent Auditor) (Independent Auditor)

Allianz se – Königinstrasse 28 – 80802 Munich – Germany – Phone +49.89.3800-0 – [email protected] – www.allianz.comAnnual report on the internet: www.allianz.com/annualreport – Design/Concept: hw.design GmbHPhotography: Wolfgang Stahr (Oliver Bäte), Peter Rigaud (Board of Management), Andreas Pohlmann (Chairman of the Supervisory Board) – Date of publication: 11 March 2016This is a translation of the German Annual Report of Allianz se. In case of any divergences, the German original is legally binding.

www.allianz.com

www.allianz.com/annualreport

Allianz SE Annual Report 2015

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